Orthofix shareholder seeks sale of Blackstone Medical, wants to replace board members

By Lisa Kerner

Charlotte, N.C., Dec. 3 - Orthofix International NV shareholder Ramius LLC made several suggestions to the company that it believes would increase shareholder value and protect the long-term interests of shareholders.

Ramius made its comments in a Dec. 3 letter to Orthofix shareholders.

In the letter, Ramius, a 4.7% shareholder, urged Orthofix to:

• Engage a strategic adviser to explore a sale or disposition of Blackstone Medical, Inc.;

• Reduce corporate overhead expenses; and

• Decrease the company's heavy debt load.

In addition, Ramius said it intends to seek shareholder support to call a special meeting for the purpose of replacing up to four members of the Orthofix board of directors.

Ramius partner Jeffrey C. Smith called Orthofix's acquisition of Blackstone Medical, a Springfield, Mass.-based international spine product company, "a failure."

"Prior to the acquisition of Blackstone, Orthofix was a healthy and debt-free company that had reasonable growth, strong profits and substantial free cash flow," Smith said.

Orthofix is a Curacao, the Netherlands-based diversified orthopedic products company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.