Broadwood urges shareholders to vote against STAAR-Alcon merger

NEW YORK - Broadwood Partners, L.P., which holds approximately 27.5% of STAAR Surgical Company (NASDAQ:STAA) stock, has published a presentation urging shareholders to vote against the proposed acquisition by Alcon Inc. (NYSE:ALC), a prominent player in the Healthcare Equipment & Supplies industry with a market capitalization of $37.16 billion. According to InvestingPro data, Alcon maintains a strong financial position with $10.03 billion in revenue over the last twelve months.

In an 81-page presentation released Thursday, Broadwood outlined its opposition to the merger agreement announced on August 5, claiming the deal "comes at the wrong time, after the wrong process, and at the wrong price." The timing of this opposition comes as Alcon’s stock trades near its 52-week low of $73.22, with InvestingPro analysis showing the company maintains healthy liquidity with a current ratio of 2.6.

Neal Bradsher, President of Broadwood, stated that the company believes "there was no compelling reason to sell STAAR at this time" and criticized the Board of Directors for failing "to conduct a sale process in a responsible manner." According to Broadwood, the agreed price "significantly undervalues STAAR and its bright future."

Broadwood noted that two other significant shareholders have publicly opposed the transaction: Yunqi Capital Limited, which owns 5.1% of STAAR’s common stock, and David Bailey, the former CEO of STAAR.

The special meeting of stockholders to vote on the proposed acquisition is scheduled for October 23. Broadwood has filed a definitive proxy statement with the SEC and is distributing a GREEN Proxy Card for shareholders to vote against the merger.

STAAR Surgical Company develops implantable lenses for the eye and companion delivery systems. Alcon is a global medical company specializing in eye care products.

The information in this article is based on a press release statement from Broadwood Partners.

In other recent news, Alcon Inc. has experienced a series of developments that have captured investor attention. Bernstein SocGen Group recently lowered its price target for Alcon to $104.65 from $109.00, following a disappointing second quarter that fell below expectations. Similarly, Deutsche Bank has adjusted its price target for Alcon to CHF69.00 from CHF80.00, citing concerns about the company’s limited visibility into market recovery. Adding to these challenges, JPMorgan downgraded Alcon from Overweight to Neutral, significantly reducing its price target to CHF62.80 from CHF94.70, due to a soft quarter and guidance cut. Meanwhile, Stifel has also reduced its price target for Alcon to $85.00 from $90.00 but continues to maintain a Buy rating on the stock.

In acquisition news, Broadwood Partners, the largest shareholder of STAAR Surgical Company, has voiced opposition to Alcon’s proposed $28 per share acquisition of STAAR. Broadwood criticized the timing, process, and price of the transaction, asserting that STAAR’s recent challenges are temporary, with expectations of a return to growth. These developments paint a complex picture for Alcon, as it navigates both market challenges and strategic opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.