CAPI­TOL ABAN­DONS IN­TE­GRAL BUY­OUT TILT

Herald Sun - - BUSINESS DAILY - KA­RINA BAR­RY­MORE HEALTH

THE $300 mil­lion takeover bat­tle be­tween med­i­cal imag­ing com­pa­nies In­te­gral Di­ag­nos­tics and Capi­tol Health has ended, af­ter Capi­tol con­firmed it would let its am­bi­tious of­fer lapse.

Capi­tol, which is chaired by former AFL chief An­drew Demetriou, has an­nounced in a state­ment to the Aus­tralian Se­cu­ri­ties Ex­change that it will not in­crease or ex­tend its buy­out bid.

In the state­ment, re­leased late on Tues­day, the com­pany also took the op­por­tu­nity to at­tack its elu­sive tar­get.

It said the In­te­gral board had “sought to dam­age and dis­credit Capi­tol” dur­ing the takeover pe­riod.

In­te­gral, which is chaired by med­i­cal heavy­weight He­len Kur­in­cic, had pub­licly knocked back the of­fer, which was in­con­sis­tent with pri­vate dis­cus­sions be­fore the takeover bid was launched, the state­ment said.

It also hinted at a board­room dust-up over con­trol of the com­bined com­pany. “Capi­tol and In­te­gral were un­able to reach agree­ment on gov­er­nance for the merged group and as such, dis­cus­sions failed to progress.”

Ms Kur­in­cic bat­ted away the com­ments.

“Fi­nally, Capi­tol Health has con­ceded de­feat with a reck­less and de­fi­cient of­fer that would have de­stroyed value for In­te­gral share­hold­ers,” Ms Kur­in­cic told Busi­ness Daily yes­ter­day.

“It has been proven, there was no value with Capi­tol’s un­so­licited and hos­tile of­fer.”

Ms Kur­in­cic said the of­fer was “deemed as nei­ther fair nor rea­son­able” by an ex­pert scru­ti­neer In­te­gral had hired.

Both sides have pre­vi­ously es­ti­mated their costs from the takeover bat­tle at up to $7 mil­lion each.

An­drew Demitriou

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