DOW JONES NEWSWIRES
Thoratec Corp. (THOR) said it ended its $282-million bid to
acquire medical-device maker HeartWare International Inc. (HTWR)
after the Federal Trade Commission said it would challenge the deal
in court.
HeartWare's shares fell 4.9% to $21.60 in after-hours trading,
while Thoratec's shares were inactive after closing at $25.14.
The FTC on Wednesday alleged that Thoratec's takeover of
HeartWare would further the company's monopoly in the market for
left ventrical devices, surgically implanted blood pumps that
support and sustain patients suffering from end-stage heart
failure.
Thoratec is the only company that has Food and Drug
Administration approval to sell left ventrical devices. HeartWare
is one of the few other makers of these devices.
Thoratec Chief Executive Gary F. Burbach said the company's
management and board decided it was in the best long-term interests
of the company and its shareholders not to pursue "what would
likely be a protracted, costly and unpredictable litigation
process."
HeartWare CEO Doug Godshall said his company agreed that
litigation wasn't in the best interests of shareholders. "While we,
too, are disappointed with the decision by the FTC, we are,
nonetheless, excited about HeartWare's prospects going forward on a
stand-alone basis," he said.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com