Laboratory Corp. of America Holdings (LH) again extended its $84
million cash tender offer for Orchid Cellmark Inc. (ORCH), marking
the fourth such time the medical-testing services provider has
pushed the offer date back due to a request for further information
from the Federal Trade Commission.
In April, LabCorp said it would acquire DNA-testing services
company Orchid, aiming to strengthen its presence in the U.S. and
give it a foothold in Britain.
The company in May received a request for additional information
from the FTC, and on Monday, LabCorp said it continues to cooperate
with that request. The offer is now set to expire Sept. 9.
The company said as of 5 p.m. EDT Friday, stockholders had
validly tendered roughly 87.4% of Orchid's outstanding shares, a
slight increase from the roughly 86.8% last reported in July.
LabCorp has benefited from double-digit sales growth in recent
quarters, powered by an increase in testing volume. Last month, the
company reported its second-quarter earnings fell 20% as
restructuring charges masked a 13% pop on its top line.
LabCorp shares closed Friday at $83.04 and were inactive
premarket. Through the latest close, the stock is down 5.6% since
the start of the year.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207;
mia.lamar@dowjones.com