According to a press release from Monday an investigation on behalf of investors of Advanced Medical Optics, Inc (NYSE: EYE) concerning potential breaches of fiduciary duty by the board of directors of Advanced Medical Optics, Inc (NYSE: EYE) in connection with the proposed acquisition by global health care and medical research giant Abbott Laboratories (NYSE: ABT) was announced. Abbott Laboratories offers Advanced Medical Optics, Inc (NYSE: EYE) shareholder $22 a share. Is that a fair price?
If you currently hold Advanced Medical Optics, Inc (NYSE: EYE) , you have certain options and you should contact the Shareholders Foundation, Inc immediately!
Email: Mail@ShareholdersFoundation.com
or Call us TODAY!
Phone: +1-(858)-779-
According to the press release by a law firm the investigation focuses on possible breaches of fiduciary duty and other violations of state law by the board of directors of Advanced Medical Optics, Inc (NYSE: EYE) arising out of their attempt to sell the Company to Abbott Laboratories (NYSE: ABT).
In a press release Abbott Laboratories (NYSE: ABT) announced that it has agreed to acquire Advanced Medical Optics Inc. ( NYSE: EYE) for $1.36 billion. Including debt, the deal is worth about $2.8 billion. Under the terms of the proposed acquisition Abbott Laboratories (NYSE: ABT) will commence a tender offer by Jan. 26, 2009 to purchase all outstanding shares of Advanced Medical Optics Inc. ( NYSE: EYE) at $22 a share. The stock of Advanced Medical Optics Inc. ( NYSE: EYE) yesterday has hit a low of $21.63 and a high of $21.77. EYE was traded on Monday at $21.70, up $12.85 (145.2%). Over the last 52 weeks the stock has ranged from a low of $2.88 to a high of $24.90. EYE shares are rising today after Abbott Laboratories said it will buy the company for $1.36 billion, or $22 per share, more than double the stock's Friday closing price. Thus offered price seems like a big premium (150%) to Friday's closing price of $8.85 of Advanced Medical Optics Inc. ( NYSE: EYE) shares, but CNNMoney.com says that Abbott Laboratories (NYSE: ABT) acquires Advanced Medical Optics Inc. ( NYSE: EYE) “at a discount”, because ‘shares of Advanced Medical crumbled nearly 90% in September and October’.
Advanced Medical, based in Santa Ana, Calif., is the top equipment maker for laser-vision correction and has a big business for treating cataracts, which is an age-related issue and a market fueled by demographics. Reportedly 60% of people over 60 have cataracts and that the number of people with the eye problem is expected to grow nearly 50% in the next decade, and the cataract business accounts for half of the revenue at Advanced Medical Optics, and 70% of its cataract sales are overseas.
According to the investigation ‘the transaction appears to be unfair’ and undervalues Advanced Medical Optics, Inc (NYSE: EYE). Advanced Medical Optics, Inc (NYSE: EYE) 's shares traded as high as $42.55 per share on May 18, 2007, $32.01 per share in October 5, 2007 and $24.90 in June 2008.
With the acquisition of Advanced Medical Optics Inc. ( NYSE: EYE), Abbott would immediately become a force in the global eye care market, which leads to the question if there are any antitrust law affecting the deal.
In 2007, Advanced Medical Optics itself made a $4.2billion unsolicited takeover bid for Bausch & Lomb, another top eye care company; but then lowered the bid after one of its largest investors decried the deal. Less than a year after the Swiss drugmaker Novartis reportedly said it would buy up to a 77 per cent stake in Alcon, the eye care market leader, from Nestlé in a two-step transaction worth as much as $39billion.
If you currently hold Advanced Medical Optics, Inc (NYSE: EYE) , you have certain options and you should contact the Shareholders Foundation, Inc immediately!
Email: Mail@ShareholdersFoundation.com
or Call us TODAY!
Phone: +1-(858)-779-
or send us your information by mail /facsimile:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-
Fax:+1-(858)-
Mail@ShareholdersFoundation.com
www.ShareholdersFoundation.com
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