Buyout Bid Lifts Osteotech
The Musculoskeletal Transplant Foundation, an organization that deals with bone, ligament and cartilage transplantation, said it has offered to buy Osteotech (OSTE) at a premium to its last close, but the company rejected the bid.
The foundation said it sent a letter to Osteotech's board on July 12 proposing to buy the company for $6.25 a share in cash. On Aug. 19, Osteotech said its board had rejected the proposal, according to the foundation. In a press release Monday, the foundation said it remained interested in acquiring Osteotech.
Osteotech, based in Eatontown, N.J., provides human bone and bone connective tissue for transplantation. After news of the takeover offer became known, shares of Osteotech jumped $1.16, or 26%, to $5.62. The stock has a 52-week range of $2.45 to $5.83.
"At the core of our charitable mission is an obligation to donor families and tissue recipients to make the best use we possibly can of these precious donated tissues and to do so in the most cost-effective manner," the foundation said. "However, our ability to accomplish this is severely compromised by our current relationship with Osteotech. Therefore, we believe we can better fulfill our mission by merging the Osteotech and MTF operations."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV