Boston, MA 12/17/2013 (wallstreetpr) – After the shares of the Solta Medical Inc (NASDAQ:SLTM), Hayward based medical systems manufacturer and marketer rejoiced on the exchange in light of the anticipated acquisition by Valeant Pharmaceuticals International (VRX), the news of investigation of claims against its board of directors also emerged.
Complete story on Valeant’s Acquisition
On Monday,an official announcement confirmed the acquisition of Solta Medical Inc by Valeant Pharmaceuticals for almost $236 million in cash, which is expected to complete by the first quarter of the year 2014. Under the deal, Valeant will takeover the entire common stock of Solta for $2.92 per share, which represents a 40% premium over its closing share price as of December 13. Moreover, the deal will give Valeant access to products used in processess such as skin rejuvenation, skin tightening and body contouring.
In the previous month, as the profits from the medical equipment business continues to fall, Solta had announced the retention of Piper Jaffray indicating its plans to lookout for a possible sale. Solta was also facing tough pressure from activist investor Voce Capital Management LLC.
To face investigation
While the sale brought some relief to Solta, the reports of investigations towards potential claims against its board members added to its worries. On Moday, Brodsky & Smith LLC announced to investigate Solta in relation to its proposed acquisition by Valeant which raises concerns of possible breaches.
As per the terms of the deal with Valeant, the shareholders of Solta may not stand to gain or might even lose as they will receive only $2.92 in cash for each share of Solta, they hole. This poses concern that the Solta’s Board of Directors are not acting in the best interest of its shareholders and raises concern of probable breach of fiduciary duty and violations of state law.
Solta’s shares moved up by almost 40% to close at $2.92 on Monday’s trading session.
