Fisher, a distributor of laboratory supplies and equipment, first announced its plan to acquire for $840 million the financially burdened PSS back on June 22. Upon hearing the news, investors voiced their opinion of the deal by beating down Fisher's shares, causing it to selloff 25% to $28.44.
The decision to terminate the deal was said to have been mutual. However,
released a report today stating that "this termination is not a huge surprise to us, given the sluggish results from PSS in its June quarter, just clearing what we thought was a bit of a convoluted minimum EBIT calculation." Lehman slashed its 2001 earnings estimate on PSS to 53 cents from 65 cents a share and lowered its 12-month price target to $5 from $8.
Shares of Fisher Scientific closed up $9.63, or 43.91%, to $31.56. While PSS' shares closed down $1.53, or 24.13%, to $4.81.