10th Jun 2015 07:41
LONDON (Alliance News) - Key shareholder meetings are to be postponed as Synergy Health PLC and STERIS Corp respond to the US Federal Trade Commission's plans to block the combination of the two businesses.
The news comes almost two weeks after the revelation that the US Federal Trade Commission intends to block STERIS Corp's proposed USD1.9 billion cash and share takeover of Synergy, a result of concerns relating to competition in the market for contract radiation sterilisation services. STERIS and Synergy Health are contesting the FTC's move.
Now, shareholder meetings will be postponed due to the US court's schedule for a preliminary injunction hearing in the US District Court for the Northern District of Ohio. The long stop date for the completion of the proposed deal has been extended to December 31, subject to UK Court aprpoval.
Synergy Health's move to reschedule its shareholder meetings to September 24 from June 11 comes one day after STERIS revealed plans to reschedule meetings of its own shareholders to the same date.
STERIS announced its decision to reschedule the vote of its shareholders on the proposed takeover to September 24 from June 11.
Synergy's legal expenses relating to the proposed deal with STERIS are expected to increase to about GBP4.8 million due to the delay in the timetable for the offer, the FTC review and contesting the FTC's findings. STERIS and New STERIS's legal expenses are expected to increase to GBP12 million. New STERIS is the proposed combined entity.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
SYR.L