CAPITOL ABANDONS INTEGRAL BUYOUT TILT
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.