Danone finishes Medical Nutrition acquisition
This article was originally published in The Tan Sheet
Executive Summary
Medical Nutrition USA becomes Danone North America's wholly owned subsidiary July 22, with $4 paid for each outstanding share. Danone looks to become more competitive in the long-term care product category, where it competes primarily with Nestle. The takeover was announced June 11 to some outcry, as lawyers investigating the deal claimed stockholders did not get a fair deal. They argued the company, which posted a 29.7 percent increase in net sales in the preceding quarter, should have held out for a larger offer 1("The Tan Sheet" June 21, 2010)
Medical Nutrition USA becomes Danone North America's wholly owned subsidiary July 22, with $4 paid for each outstanding share. Danone looks to become more competitive in the long-term care product category, where it competes primarily with Nestle. The takeover was announced June 11 to some outcry, as lawyers investigating the deal claimed stockholders did not get a fair deal. They argued the company, which posted a 29.7 percent increase in net sales in the preceding quarter, should have held out for a larger offer 1 (Also see "Danone Shakes Up Elderly Care Market With Offer For Medical Nutrition USA" - Pink Sheet, 21 Jun, 2010.)). |