There is always someone who isn't satisfied. A week ago, Dutch company Royal DSM ($DSM) announced with plenty of fanfare that it would fork over $360 million in cash for Kensey Nash ($KNSY), a regenerative medicine-focused device company with products based on collagen, synthetic polymers and extracellular matrices. But Kensey Nash investor Hilary Coyne isn't happy.
According to Bloomberg, Coyne is suing the Exton, PA-based company because the sale allegedly cheats investors out of a better deal. Coyne's suit, filed in Delaware Chancery Court in Wilmington, wants a judge to stop it. Coyne is also aiming to have the lawsuit ruled as a class-action matter that represents all of the company's shareholders.
As Bloomberg notes, DSM's May 3 offer of $38.50 per share represented a 33% premium before the announcement. But since then, the stock soared. It closed May 10 at $38.51, up a tiny bit for the day.
DSM is hoping to build its biomedical business with the deal, and expects it would tap into Kensey Nash's robust customer base, including Stryker ($SYK) and St. Jude Medical ($STJ). At the time of the sale, Kensey Nash executives were equally bullish about the whole thing. Chairman Walter Maupay Jr. said in a statement that the sale price "is a very positive outcome for our stockholders and maximizes the value of Kensey Nash's regenerative medicine platforms." Kensey Nash's board also voted unanimously in favor of the deal.
- read the Bloomberg story