LabCorp (NYSE:LH) has secured enough shares for its $85 million acquisition of DNA testing company Orchid Cellmark (NASDAQ:ORCH) but the company still wants more shares.
Burlington, North Carolina-based LabCorp is extending its offer for the shareholders who did not tender their shares. The shares tendered represent 86.5 percent of Princeton, New Jersey-based Orchid’s outstanding shares, which have been accepted for payment of $2.80 cash per share. LabCorp has extended that same offer to remaining shareholders until 4 p.m. on Dec. 15. If LabCorp can reach 90 percent of outstanding shares, then the company can complete a short-form merger. Under the terms of the merger agreement, the short form will allow the merger to become effective as soon as possible without a meeting of the stockholders of the company.
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LabCorp in April announced it would acquire Orchid in a deal to boost its identity testing offerings and give the company a presence in the United Kingdom, where Orchid already has operations. The deal was expected to close in May but the Federal Trade Commission asked for more information and LabCorp extended its offer for Orchid nine times while regulators continued their review.
Under an agreement with regulators announced last week, LabCorp will sell parts of Orchid’s paternity business to Diagnostics Center, a Fairfield, Ohio company.
