Given Imaging to Go It Alone

Send in e-mailSend in e-mail

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, the camera-in-a-pill maker said on Tuesday.

The Israeli medical devices maker also said Discount Investment Corp planned 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.

Shares in Given Imaging were down $2.20 to $16.00 in early Nasdaq trade. They slid 13.1 percent in Tel Aviv to close at 59.25 shekels.

Discount, whose shares closed down 3.3 percent in Tel Aviv, owns 50.3 percent of technology investment company Elron. Shares in Elron dropped 6.1 percent.

There can be no assurance that any transaction will occur, Given Imaging added.

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

In the Yokneam hi-tech zone.Credit: Yuval Tabul