Broadwood urges STAAR shareholders to reject Alcon takeover bid

NEW YORK - Broadwood Partners, STAAR Surgical Company’s (NASDAQ:STAA) largest shareholder with a 27.5% stake, is urging fellow shareholders to vote against the proposed $28 per share acquisition by Alcon Inc. (NYSE:ALC), a prominent healthcare equipment manufacturer with a market capitalization of $37.5 billion. According to InvestingPro data, Alcon maintains strong financial health with a current ratio of 2.6 and generates annual revenue exceeding $10 billion.

In a letter sent to shareholders Wednesday, Broadwood founder Neal Bradsher claimed STAAR’s management team significantly reduced its financial projections just days before the board voted on the sale. According to Bradsher, management projected twice as much EBITDA for 2027 on July 23, but then reduced that forecast by 20% ten days later after Alcon agreed to the acquisition price. For context, Alcon’s current EBITDA stands at $2.3 billion, with analysts maintaining a bullish outlook on the company. InvestingPro subscribers can access detailed financial projections and 9 additional exclusive insights about Alcon’s business fundamentals.

Broadwood alleges this revision was made to justify what it calls an "inadequate price" that would trigger accelerated vesting of management’s shares, resulting in approximately $55 million in compensation upon closing. The letter specifically notes that STAAR’s CEO stands to receive approximately $24 million despite serving in the role for just five months when the agreement was signed.

The investment firm also questioned the methodology used by STAAR’s financial advisor in determining the company’s cost-of-capital assumption, claiming it artificially lowered STAAR’s fair value range. Broadwood contends that based on management’s initial projections and what it considers STAAR’s actual cost of capital, the company’s fair value midpoint would exceed $41 per share.

Broadwood is soliciting votes against the transaction at STAAR’s special meeting scheduled for October 23, 2025. The firm indicated it plans to help identify and elect new directors if the deal is rejected.

The claims were made in a press release statement issued by Broadwood, which has been a STAAR investor for over 30 years. Notably, Alcon’s stock currently trades near its 52-week low of $73.22, with a P/E ratio of 34.9. Discover comprehensive analysis and Fair Value estimates for both companies through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

In other recent news, STAAR Surgical Company is at the center of a heated debate regarding its proposed acquisition by Alcon Inc. Yunqi Capital, which holds a 5.1% stake in STAAR Surgical, has voiced its opposition, arguing that the $28 per share offer undervalues the company’s potential, particularly in the Chinese market. Similarly, Broadwood Partners, owning 27.5% of STAAR, is urging shareholders to reject the deal, citing dissatisfaction with the current offer, especially after a higher $58 per share proposal was rejected last year. Broadwood has been vocal about its concerns, issuing detailed presentations and letters criticizing the timing, process, and price of the proposed merger. Meanwhile, in a related development, Stifel has adjusted its price target for Alcon, lowering it from $90 to $85, but maintained a Buy rating on the stock. Stifel’s analysis suggests potential challenges in Alcon’s sales growth, despite recent guidance reductions. These developments highlight the ongoing tensions and differing perspectives among key stakeholders in the proposed acquisition.

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