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NEW YORK - Broadwood Partners, which owns 27.5% of STAAR Surgical Company (NASDAQ:STAA), is urging shareholders to vote against the proposed acquisition by Alcon Inc. (NYSE:ALC) for $28 per share. Alcon, a prominent player in the healthcare equipment sector with a market capitalization of $38 billion, has maintained strong financial health according to InvestingPro analysis.
In a letter issued Monday to STAAR’s board, Broadwood criticized directors for accepting the current offer after rejecting a $58 per share proposal from the same company last year.
"No to $58. Yes to $28," wrote Neal Bradsher, Founder and President of Broadwood Capital, highlighting what the investment firm sees as inconsistent decision-making by STAAR’s board.
Broadwood questioned the business rationale behind accepting the lower offer, noting that despite temporary challenges in China and inventory issues, STAAR’s fundamentals remain strong with "sufficient cash, strong demand, new products ready to be launched, and cost savings opportunities." Alcon itself demonstrates solid financial stability with a healthy current ratio of 2.6 and annual revenue exceeding $10 billion. InvestingPro data reveals that analysts maintain a bullish outlook on Alcon, though the stock currently trades at a relatively high earnings multiple.
The investment firm suggested the company’s prospects haven’t significantly changed since the board rejected the higher offer sixteen months ago, and expressed skepticism about the board’s ability to accurately assess the company’s future.
STAAR shareholders are scheduled to vote on the proposed acquisition at a special meeting on 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 deal.
The letter is part of Broadwood’s ongoing effort to block the transaction, arguing that STAAR Surgical is "far more valuable than $28 per share" and has "bright prospects."
Based on a press release statement, Broadwood owns approximately 27.5% of STAAR’s outstanding common shares, making it the company’s largest shareholder. For deeper insights into both companies’ valuations and comprehensive analysis, investors can access detailed Pro Research Reports available on InvestingPro, covering over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Broadwood Partners, holding a significant 27.5% stake in STAAR Surgical Company, has urged shareholders to oppose the proposed acquisition by Alcon Inc. Broadwood has expressed dissatisfaction with the timing, process, and pricing of the merger, arguing that STAAR’s recent challenges are temporary and that the company anticipates a return to growth. Meanwhile, Alcon has faced a series of analyst revisions. Stifel has adjusted its price target for Alcon to $85 while maintaining a Buy rating, pointing to uncertainty in sales growth for the latter half of 2025. Deutsche Bank also lowered its price target for Alcon to CHF69, maintaining a Hold rating due to limited visibility into market recovery. Bernstein SocGen reduced Alcon’s price target to $104.65, following a disappointing second quarter and a subsequent earnings miss. These developments reflect ongoing debates and evaluations concerning Alcon’s strategic moves and financial performance.
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