Orthovita shareholders sue to stop $316 million Stryker buyout (MassDevice)
Stryker Commences Tender Offer for Acquisition of Orthovita, Inc. (press release)
The numbers…
- Stryker pays 3.3 X sales in 2010 of $95M
- $3.85/share in all cash
- Price represents 41% premium of last VITA close
- Transaction includes $12M of debt
The stockholders, led by Andrew Thorn, accused the two companies and Orthovita’s board of breaching its fiduciary duty in agreeing to the deal and charges Stryker with abetting that breach.
Earlier this month Stryker offered to pay $3.85 per share in cash for Orthovita, a 41 percent premium on VITA’s closing price of $2.73 per share the last trading day before the deal was announced. A tender offer for the shares kicked off last week, set to expire at midnight June 24.