HeartWare Responds To Engaged Capital's Comments Regarding

HeartWare International Inc HTWR, a developer of medical devices, confirmed on Wednesday it has received notice from Engaged Capital, an activist hedge fund and shareholder, which nominated 3 director candidates to the company's Board of Directors. Engaged Capital has made its views known that it objects to HeartWare's proposed $860 million acquisition of Valtech Cardio. The investor cited various factors, including the dilutive effect of the deal on HeartWare's investors and that the deal would take away the company's focus on the left ventricular assist device market. HeartWare responded to Engaged Capital in its press release. The company said that the transaction would "deepen and expand our presence in the global heart failure market, establishing us as the leader in two high-growth categories in the market, and positioning us to accelerate our long-term revenue growth and improve margins." HeartWare added that Engaged Capital has "only recently" become a HeartWare stockholder and "does not see the benefits" of the transaction. "We are also encouraged by customer feedback from heart failure cardiologists, surgeons and interventional cardiologists around the world who recognize that this compelling combination will better enable them to treat patients," HeartWare also wrote. "Other recent transactions in the market affirm our view that there is a significant and immediate unmet need for improved mitral repair technology, while replacement represents a major future opportunity in the mitral arena."
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsHedge FundsGeneralEngaged CapitalHeartWareValtech Cardio
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!