Broadwood urges STAAR board to proceed with acquisition vote

NEW YORK - Broadwood Partners, which owns 27.5% of STAAR Surgical Company (NASDAQ:STAA), has called on the company's board to proceed with the scheduled October 23 shareholder vote on Alcon Inc.'s (NYSE:ALC) proposed acquisition without delay. Alcon, a prominent player in the Healthcare Equipment & Supplies industry with $10.03 billion in trailing twelve-month revenue and strong liquidity metrics, is currently trading near its 52-week low of $71.55.

In a letter sent Friday to STAAR's board, Broadwood founder Neal Bradsher urged directors to "avoid the temptation to tilt the playing field by delaying the meeting, releasing misleading statements, or otherwise attempting to cajole STAAR shareholders to agree to this misbegotten deal." According to InvestingPro data, Alcon maintains a healthy financial position with a current ratio of 2.6 and operates with a moderate level of debt.

Broadwood continues to oppose the transaction announced on August 5, claiming the deal represents a "woefully inadequate price" for the company. The investment firm noted that other large institutional investors and all three proxy advisors have also expressed opposition to the acquisition terms. InvestingPro analysis shows Alcon's current market capitalization stands at $37.68 billion, with analysts setting price targets ranging from $77.53 to $123 per share. Discover more detailed valuation metrics and 8 additional ProTips with an InvestingPro subscription, including exclusive access to comprehensive Pro Research Reports covering 1,400+ top stocks.

"You have had months to justify your decision and solicit shareholder support for the transaction," Bradsher wrote in the letter. "There has been sufficient time and opportunity to tell your story, and you have done so in accordance with the schedule you selected."

The letter called on directors to accept the outcome of next week's vote, suggesting that if shareholders reject the deal, the board should "have the humility to recognize that the Board needs to work with shareholders to ensure a better path forward."

Broadwood has filed a definitive proxy statement and is soliciting votes on its green proxy card against the proposed acquisition. The investment firm has established a website, LetSTAARShine.com, with additional information for shareholders.

The letter was disclosed in a press release issued by Broadwood Partners.

In other recent news, Alcon Inc. has been at the center of significant developments. The company is involved in a proposed acquisition of STAAR Surgical Company, which has sparked controversy. Major shareholder Broadwood Partners, holding 27.5% of STAAR's shares, has urged shareholders to reject the acquisition, citing concerns about the decision-making process. In contrast, STAAR's board is advocating for the merger, highlighting the $28.00 per share all-cash offer from Alcon, which is a 59% premium to STAAR's 90-day average price before the announcement. However, proxy advisory firm Glass Lewis has recommended shareholders vote against the deal, pointing to issues with the sale process and valuation.

In terms of analyst ratings, Stifel has reiterated its Buy rating on Alcon, maintaining a price target of $85, emphasizing Alcon's leadership in the ophthalmology sector. Meanwhile, Barclays has continued its Equalweight rating, with a price target of $86, as part of its ongoing coverage of the company. These ratings reflect differing perspectives on Alcon's current market position and potential future performance.

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