NEW YORK (AP) — Shares of Given Imaging Ltd. tumbled before Tuesday's opening bell after the medical equipment company said it was no longer considering a possible sale of the company and added that one of its largest shareholders plans to sell its stake.
The Israeli company said in October that it was reviewing a range of strategic options designed to boost shareholder value, including the possible sale or merger of the company. Given Imaging makes diagnostic products for gastrointestinal disorders including its PillCam capsules that patients swallow for internal examinations.
But Given Imaging said Tuesday that the board committee in charge of the review found that the continuation of the company's operating plan, along with additional acquisitions and alliances, is the best way to boost value for shareholders.
Meanwhile, Given Imaging said that Discount Investment Corp. has said that it plans to try to sell its 45.5 percent stake in the company in one block.
In premarket trading, Given Imaging shares fell $1.76, or 9.7 percent, to $16.44. Its shares are up from a 52-week low of $12.14 in late July. They traded as high as $19.95 in early April.