Reuters: Given Imaging is no longer considering a sale or merger and will instead focus on its existing operating plan, as well as potential acquisitions and alliances.
Discount Investment Corp plans to seek and consider a sale of its controlling stake in Given in one block. Discount owns 45.5 percent of Given directly and indirectly through Elron Electronic Industries.
Discount owns 50.3 percent of technology investment company Elron.
There can be no assurance that any transaction will occur, Given Imaging said Tuesday.
The company, which makes capsule endoscopy products, said in October it was evaluating a potential merger or sale after receiving expressions of interest from a range of parties. Other options under review included a strategic alliance or purchase of assets. "After a thorough exploration, the executive committee of the board of directors ... concluded that the continued execution of the company's operating plan, supplemented by additional acquisitions and alliances, provides the best opportunity at this time to enhance value for all of the company's shareholders," the firm said in a statement.
To me, this looks like Givn will tank huge if Discount does sell its stake. But Givn is banking on making an alliance with some big pharma company based on latest encouraging trial results for the Pill Cam and potential sales in Japan. I'm inclined to get out now before the stock goes down even worse than today and possibly buy back if and when some alliance is made. How about you?