OFFER TO PURCHASE FOR CASH ALL OUTSTANDING SHARES OF COMMON STOCK
Table of Contents
EXHIBIT
(a)(1)(A)
OFFER TO
PURCHASE FOR CASH
ALL OUTSTANDING SHARES OF COMMON STOCK
ALL OUTSTANDING SHARES OF COMMON STOCK
(Including the Associated
Rights)
OF
DATASCOPE CORP.
BY
AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF GETINGE AB
AND
GETINGE AB
AT
$53.00 PER SHARE NET TO
SELLERS
THE OFFER AND WITHDRAWAL RIGHTS
WILL EXPIRE AT 12:00 MIDNIGHT, NEW YORK CITY TIME, AT THE END OF
TUESDAY, OCTOBER 28, 2008, UNLESS THE OFFER IS
EXTENDED.
DaVinci Merger Sub, Inc., a Delaware corporation
(“Purchaser”) and an indirect wholly owned subsidiary
of Getinge AB, a Swedish Aktiebolag (“Getinge”), is
offering to purchase all of the outstanding shares of Common
Stock, par value $0.01 per share (the “Shares”), of
Datascope Corp., a Delaware corporation (“Datascope”),
together with the associated Rights (the “Rights”)
issued pursuant to the Rights Agreement, dated May 22,
1991, as amended, by and between Datascope and Continental Stock
Transfer & Trust Company, a New York corporation,
as rights agent, at a price per share of $53.00, net to the
seller in cash (such amount or any different amount per Share
that may be paid pursuant to the Offer, the “Offer
Price”), subject to any required withholding of taxes, upon
the terms and subject to the conditions set forth in this Offer
to Purchase, dated September 30, 2008 (the “Offer to
Purchase”), and in the related Letter of Transmittal
(which, together with any amendments or supplements,
collectively constitute the “Offer”). The Offer is
being made pursuant to an Agreement and Plan of Merger, dated
September 15, 2008 (the “Merger Agreement”),
among Datascope, Getinge and Purchaser. The Offer is conditioned
upon, among other things, (i) there being validly tendered
and not properly withdrawn prior to the expiration of the Offer
a number of Shares that represents at least a majority of the
total number of outstanding Shares on a fully diluted basis, and
(ii) the expiration or termination of all statutory waiting
periods (and any extensions thereof) applicable to the Offer
under the
Xxxx-Xxxxx-Xxxxxx
Antitrust Improvements Act of 1976, as amended. See
Section 14 — “Conditions of the Offer.”
After the completion of the Offer and the satisfaction or waiver
of certain conditions, Purchaser will merge with and into
Datascope (the “Merger”), with Datascope becoming an
indirect wholly owned subsidiary of Getinge.
The Datascope board of directors has unanimously
(i) approved and adopted the Merger Agreement and declared
the Merger Agreement, the Offer, the Merger and the transactions
contemplated by the Merger Agreement advisable and in the best
interests of the Datascope stockholders; (ii) determined to
take all action necessary to render the restrictions on business
combinations and voting requirements contained in
Section 203 of the General Corporation Law of the State of
Delaware, if applicable, inapplicable to each of the Offer and
the Merger; and (iii) recommended that the Datascope
stockholders accept the Offer, tender their Shares in the Offer
to Purchaser and adopt the Merger Agreement and the Merger to
the extent required by applicable law.
A summary of the principal terms of the Offer appears in the
“Summary Term Sheet” of this Offer to Purchase. This
entire document should be read carefully before deciding whether
to tender Shares.
IMPORTANT
Any Datascope stockholder wishing to tender Shares in the Offer
must, prior to 12:00 midnight, New York City time, at the end of
October 28, 2008 (as such time may be extended as set forth
in this Offer to Purchase) (i) complete and sign the Letter
of Transmittal (or a facsimile) in accordance with the
instructions in the Letter of Transmittal, including any
required signature guarantees, and mail or deliver the Letter of
Transmittal, certificates representing Shares tendered and all
other required documents to American Stock Transfer &
Trust Company, LLC (the “Depositary”), or
(ii) follow the procedure for book-entry transfer set forth
in Section 3 — “Procedures for Accepting the
Offer and Tendering Shares”. A Datascope stockholder whose
Shares are registered in the name of a bank, broker, dealer or
other nominee must request the nominee to tender the Shares to
Purchaser.
Any Datascope stockholder that wishes to tender Shares and
cannot deliver certificates representing those Shares and all
other required documents to the Depositary on or prior to the
expiration of the Offer, or that cannot comply with the
procedures for book-entry transfer on a timely basis, may tender
the Shares pursuant to the guaranteed delivery procedure set
forth in Section 3 — “Procedures for
Accepting the Offer and Tendering Shares.”
Questions and requests for assistance may be directed to
Xxxxxxxxx, Inc. (the “Information Agent”), the
Depositary or Xxxxxxx Lynch, Xxxxxx, Xxxxxx &
Xxxxx Incorporated (the “Dealer Manager”), at their
respective addresses and telephone numbers set forth on the back
cover of this Offer to Purchase. Additional copies of this Offer
to Purchase, the Letter of Transmittal, the Notice of Guaranteed
Delivery and other related materials may be obtained from the
Information Agent, or the stockholder may contact his or her
broker, dealer, commercial bank, trust company or other nominee
for copies of these documents. THE OFFER, INCLUDING THIS OFFER
TO PURCHASE AND RELATED LETTER OF TRANSMITTAL, CONTAINS
IMPORTANT INFORMATION, AND YOU SHOULD READ BOTH CAREFULLY AND IN
THEIR ENTIRETY BEFORE MAKING A DECISION WITH RESPECT TO THE
OFFER.
September 30, 2008
Table of Contents
The
Depositary for the Offer is:
Facsimile:
(000) 000-0000
|
By Mail or Overnight Delivery: | By Hand or Courier: | ||
Confirm by Telephone:
(000) 000-0000 or (000) 000-0000 |
American Stock Transfer & Trust Company Operations Center Attn: Reorganization Department 0000 00xx Xxxxxx Xxxxxxxx, XX 00000 |
American Stock Transfer & Trust Company Attn: Reorganization Department 00 Xxxxxx Xxxx Xxxxxxxxx Xxxxx Xxx Xxxx, XX 00000 |
The
Information Agent for the Offer is:
000 Xxxxx Xxxxxx, 00xx Floor
New York, NY
10038-3560
Banks and Brokers Call
(000) 000-0000
All Others Call Toll Free
(000) 000-0000
The
Dealer Manager for the Offer is:
Xxxxxxx
Xxxxx & Co.
Four World
Financial Center
New York, New York 10080
Call Toll Free: (000) 000-0000
International Callers: (000) 000-0000
New York, New York 10080
Call Toll Free: (000) 000-0000
International Callers: (000) 000-0000
TABLE OF
CONTENTS
Page | ||||
ii | ||||
1 | ||||
3 | ||||
4 | ||||
5 | ||||
8 | ||||
9 | ||||
9 | ||||
10 | ||||
11 | ||||
11 | ||||
12 | ||||
13 | ||||
26 | ||||
29 | ||||
29 | ||||
31 | ||||
33 | ||||
33 | ||||
35 |
i
Table of Contents
SUMMARY
TERM SHEET
This Summary Term Sheet highlights the material provisions of
this Offer to Purchase, dated September 30, 2008 (the
“Offer to Purchase”), and the related Letter of
Transmittal (which, together with any amendments or supplements,
collectively constitute the “Offer”). This Summary
Term Sheet is not meant to be a substitute for the information
contained in the remainder of the Offer. We urge you to read
carefully the remainder of this Offer to Purchase and the Letter
of Transmittal, the Notice of Guaranteed Delivery and the other
documents to which we have referred you, because this Summary
Term Sheet may not contain all of the information that is
important to you. We have included cross-references in this
Summary Term Sheet to other sections of the Offer to Purchase
where you will find more complete descriptions of the topics
mentioned below.
Securities Sought in the Offer: | All outstanding shares of Common Stock, par value $0.01 per share (“Shares”), of Datascope Corp. (“Datascope”), together with the associated Rights (the “Rights”) issued pursuant to the Rights Agreement, dated May 22, 1991, as amended, by and between Datascope and Continental Stock Transfer & Trust Company, a New York corporation, as rights agent. See the “Introduction” of this Offer to Purchase for further details. | |
Price Offered Per Share in the Offer: | $53.00 per Share, net to the seller in cash, without interest and subject to any required withholdings of taxes (such amount or any different amount per Share that may be paid pursuant to the Offer, the “Offer Price”). See Section 1 — “Terms of the Offer” and Section 3 — “Procedures for Accepting the Offer and Tendering Shares” of this Offer to Purchase for further details. | |
Scheduled Expiration Time of the Offer: | 12:00 midnight, New York City time, at the end of October 28, 2008, as such time may be extended as set forth in this Offer to Purchase (the “Expiration Date”). See Section 1 — “Terms of the Offer” and Section 3 — “Procedures for Accepting the Offer and Tendering Shares” of this Offer to Purchase for further details. | |
Purchaser in the Offer: | DaVinci Merger Sub, Inc., a Delaware corporation (“Purchaser”) and an indirect wholly owned subsidiary of Getinge AB, a Swedish Aktiebolag (“Getinge”). See Section 9 — “Information Concerning Getinge and Purchaser” of this Offer to Purchase for further details. | |
Minimum Condition to the Offer: | At least a majority of Datascope’s fully diluted Shares (assuming the exercise of any outstanding warrants and the grant and exercise of all options available for grant under Datascope’s equity incentive plans) are validly tendered and not properly withdrawn on or prior to the Expiration Date (the “Minimum Condition”). See Section 14 — “Conditions of the Offer” of this Offer to Purchase for further details. | |
Datascope Board of Directors’ Recommendation regarding the Offer: | The Datascope board of directors unanimously recommends the Datascope stockholders accept the Offer and tender their Shares into the Offer. See Section 11(b) — “The Merger Agreement” and Section 14 — “Conditions of the Offer” of this Offer to Purchase for further details. |
Who is
offering to purchase my Shares?
The Purchaser is DaVinci Merger Sub, Inc., a Delaware
corporation formed for the purpose of making this acquisition.
We are an indirect wholly owned subsidiary of Getinge AB. See
Section 9 — “Information Concerning Getinge
and Purchaser” of this Offer to Purchase for further
details.
ii
Table of Contents
What are
the classes and amounts of securities sought in the
Offer?
We are seeking to purchase all of the outstanding Shares and the
Rights. For further information, see Section 1 —
“Terms of the Offer” of this Offer to Purchase.
How much
are you offering to pay? What is the form of payment? Will I
have to pay any fees or commissions?
We are offering to pay $53.00 per Share net to you, in cash. See
Section 1 — “Terms of the Offer” of
this Offer to Purchase for further details.
If you are the record owner of your Shares and you directly
tender your Shares to us in the Offer, you will not have to pay
brokerage fees or similar expenses. If you own your Shares
through a broker or other nominee, and your broker tenders your
Shares on your behalf, your broker or nominee may charge you a
fee or commission for doing so. You should consult your broker
or nominee to determine whether any charges will apply. See the
“Introduction” of this Offer to Purchase for further
details.
Is there
an agreement governing the tender offer?
Yes. Datascope, Purchaser and Getinge have entered into an
Agreement and Plan of Merger, dated as of September 15,
2008. The merger agreement provides, among other things, for the
terms and conditions of the Offer and, following consummation of
the Offer, the merger of Purchaser with and into Datascope. See
Section 11(b) — “The Merger Agreement”
and Section 14 — “Conditions of the
Offer” of this Offer to Purchase.
How do I
tender my Shares?
To tender your Shares:
• | If you are a record holder of Shares, on or prior to the Expiration Date, you must complete and sign the enclosed Letter of Transmittal and mail or deliver it to American Stock Transfer & Trust Company (the “Depositary”), together with the certificates representing your Shares and any other documents required by the Letter of Transmittal. A record holder may also follow the procedure for book-entry transfer set forth in Section 3 — “Procedures for Accepting the Offer and Tendering Shares”. | |
• | If your Shares are held in street name (through a broker, dealer or other nominee), the Shares must be tendered by your nominee through the Depositary. You should contact your broker, dealer or other nominee and instruct them to tender your Shares. | |
• | If you are unable to deliver any required document or instrument to the Depositary on or before the Expiration Date, you may be able to tender your Shares by using the enclosed Notice of Guaranteed Delivery. The Notice of Guaranteed Delivery allows a broker, a bank or other fiduciary that is an eligible institution to guarantee on or prior to the Expiration Date that the missing items will be received by the Depositary within three NASDAQ trading days after the Expiration Date. For the tender to be valid, the Depositary must receive the missing items within that three-trading-day period. For assistance, please call the Information Agent, Xxxxxxxxx, Inc., at (000) 000-0000 if you are a banker or broker and toll-free at (000) 000-0000 if you are not a banker or broker. See Section 3 — “Procedures for Accepting the Offer and Tendering Shares” of this Offer to Purchase for further details. |
When will
I be paid for my tendered Shares?
Subject to the terms and conditions of the Offer, we will pay
for all Shares validly tendered and not properly withdrawn on or
prior to the Expiration Date, promptly after the Expiration
Date. For further information, see Section 2 —
“Acceptance for Payment and Payment for Shares” of
this Offer to Purchase.
iii
Table of Contents
Do you
have the financial resources to make payment?
Yes. Getinge, our parent company, will provide us with
sufficient funds to purchase all Shares validly tendered and not
properly withdrawn in the Offer and to acquire the remaining
Shares in the Merger, which is expected to follow the successful
completion of the Offer in accordance with the terms and
conditions of the Merger Agreement. The Offer is not conditioned
upon any financing arrangements. Getinge will obtain the
necessary funds from
(i) cash-on-hand
and (ii) a senior, unsecured term credit facility described
in Section 12 — “Source and Amount of
Funds” of this Offer to Purchase.
Is your
financial condition relevant to my decision to tender my
Datascope shares in the Offer?
No. We do not think our financial condition is relevant to your
decision whether to tender your Shares and accept the Offer
because:
• | The Offer is being made for all outstanding Shares solely for cash; | |
• | We, through our parent company, Getinge, will have sufficient funds and financial resources available to purchase all Shares validly tendered and not properly withdrawn in the Offer; | |
• | The Offer is not subject to any financing condition; and | |
• | If we consummate the Offer, we will acquire all remaining Shares in the Merger for the same cash price as the Offer Price. |
See Section 12 — “Source and Amount of
Funds” of this Offer to Purchase for further details.
How long
do I have to decide whether to tender my Shares in the
Offer?
You will have until the Expiration Date at 12:00 midnight, New
York City time, at the end of Tuesday, October 28, 2008, or as
the expiration date may be extended, to tender your shares in
the Offer. If you cannot deliver everything required to make a
valid tender by the Expiration Date, you may still participate
in the Offer by using the enclosed Notice of Guaranteed Delivery
prior to that time. See Section 1 — “Terms
of the Offer” and
Section 3— “Procedures for Accepting the
Offer and Tendering Shares” of this Offer to Purchase.
Can the
tender offer be extended or can there be a subsequent offering
period?
Yes. We have agreed in the Merger Agreement that:
• | If, at the scheduled Expiration Date, any condition of the Offer (as set forth in Section 14 — “Conditions of the Offer”) is not satisfied or waived, we must extend the Offer for one or more periods of five (5) business days. | |
• | If all of the conditions of the Offer are satisfied, but the number of Shares validly tendered and not properly withdrawn in the Offer, together with any Shares owned by Getinge, is less than 90% of the outstanding Shares of Datascope common stock, we may, without the consent of Datascope, commence a subsequent offering period for between three (3) and twenty (20) business days for the remaining outstanding Shares. | |
• | We must extend the Offer for any period required by any law, rule, regulation, interpretation or position of the U.S. Securities and Exchange Commission, the staff of the U.S. Securities and Exchange Commission, or the NASDAQ Global Select Market (“NASDAQ”). |
See Section 1 — “Terms of the Offer” of
this Offer to Purchase for further details.
iv
Table of Contents
How will
I be notified if the tender offer is extended?
If we extend the tender offer, we will issue a press release
announcing the extension and the new Expiration Date no later
than 9:00 a.m., New York City time, on the first business
day after the previously scheduled Expiration Date of the Offer.
For further information, see Section 1 —
“Terms of the Offer.”
How do I
withdraw tendered Shares?
If, after tendering your Shares in the Offer, you decide you do
not want to accept the Offer, you may withdraw your Shares by
instructing the Depositary in writing before the Offer expires.
If you tendered your Shares by giving instructions to your
broker, bank, or other nominee, you must instruct the broker,
bank, or other nominee to arrange for the withdrawal of your
Shares. For more information, see Section 4 —
“Withdrawal Rights” of this Offer to Purchase.
Until
what time may I withdraw previously tendered Shares?
You may withdraw your previously tendered Shares at any time on
or prior to the Expiration Date, as it may be extended, and, if
we have not previously accepted your Shares for payment, you may
withdraw them at any time after November 29, 2008. This
right to withdraw will not apply to Shares tendered in any
subsequent offering period, if one is provided, pursuant to
Rule 14d-11
of the Exchange Act. See Section 4 —
“Withdrawal Rights.”
What are
the most significant conditions to the Offer?
We are not required to complete the Offer, unless:
• | At least a majority of the Shares (on a fully diluted basis, assuming the exercise of any outstanding Datascope warrants and the grant and exercise of all options available for grant under Datascope’s equity incentive plans) are validly tendered and not properly withdrawn prior to the expiration of the Offer. As of September 12, 2008, the minimum number of Shares required to be tendered in the Offer equaled 8,456,658. See Section 14 — “Conditions of the Offer” of this Offer to Purchase for further details; and | |
• | The waiting period under the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976, as amended, has terminated or expired. |
The Offer is also subject to a number of other important
conditions. We expressly reserve the right to waive any such
conditions, but we cannot, without Datascope’s prior
written consent, add to or supplement the conditions to the
Offer or modify the conditions to the Offer in any manner
materially adverse to the holders of the Shares. The Offer is
not conditioned on Getinge obtaining financing. See
Section 14 — “Conditions of the Offer”
of this Offer to Purchase for further details.
Will the
Offer be followed by a merger if all of the Shares are not
tendered in the Offer?
Yes, if we accept for payment and pay for at least a majority of
the total number of Shares and the other conditions to the
Merger are satisfied or waived, Purchaser will merge with and
into Datascope. In the Merger, we will acquire all remaining
Shares for the same cash price as the Offer Price. If the Merger
takes place, Getinge will, through Purchaser, own all of the
Shares, and all of the remaining Datascope stockholders (other
than Shares subject to dissenters’ rights and Shares owned
by Datascope, Getinge and Purchaser) will receive the Offer
Price. See Section 11(b) — “The Merger
Agreement” and Section 14 — “Conditions
of the Offer” of this Offer to Purchase for a description
of the conditions to the Merger.
What does
the Datascope board of directors recommend?
The Datascope board of directors unanimously:
• | approved and adopted the Merger Agreement and declared the Merger Agreement, the Offer, the Merger and the transactions contemplated by the Merger Agreement advisable and in the best interests of the Datascope stockholders; |
v
Table of Contents
• | determined to take all action necessary to render the restrictions on business combinations and voting requirements contained in Section 203 of the General Corporation Law of the State of Delaware, if applicable, inapplicable to each of the Offer and the Merger; and | |
• | recommended that the Datascope stockholders accept the Offer, that the Datascope stockholders tender their Shares in the Offer to Purchaser and that the Datascope stockholders adopt the Merger Agreement and the Merger to the extent required by applicable law. |
See the “Introduction” of this Offer to Purchase for
further details.
Have any
Datascope stockholders previously agreed to tender their Shares
in the Offer?
Yes. The chairman and chief executive officer of Datascope has
entered into a voting agreement with Getinge to tender his
Shares in the Offer. In addition, to the knowledge of Datascope
after reasonable inquiry, each of its other directors and
executive officers currently intends to tender all of his or her
Shares in the Offer or to sell all of his or her Shares prior to
the consummation of the Offer. For further information, see the
“Introduction” of this Offer to Purchase.
If I
decide not to tender, how will the Offer affect my
Shares?
If you decide not to tender your Shares in the Offer and the
Merger occurs, unless you properly exercise your
dissenters’ rights under Section 262 of the General
Corporation Law of the State of Delaware, you will subsequently
receive the same amount of cash per Share that you would have
received had you tendered your Shares in the Offer, without any
interest being paid on such amount. Therefore, if the Merger
takes place, the only difference to you between tendering your
Shares and not tendering your Shares is that you will be paid
earlier if you tender your Shares.
If you decide not to tender your Shares in the Offer and we
purchase the tendered Shares, but the Merger does not occur,
there may be so few remaining stockholders and publicly traded
Shares that the Shares will no longer be eligible to be traded
through NASDAQ or other securities exchanges and there may not
be an active public trading market for the Shares. See
Section 11 — “Purpose of the Offer; the
Merger Agreement; Statutory Requirements; Dissenters’
Rights; ‘Going Private’ Transactions; Plans for
Datascope” of this Offer to Purchase for further details.
What is
the market value of my Shares as of a recent date?
The Offer Price represents a premium of approximately 33.6% to
Datascope’s volume weighted average price of $39.67 per
share of common stock for the three-month period ended
June 3, 2008, the day before the Datascope board of
directors announced that it was exploring strategic options for
Datascope. The closing price for Datascope shares was $49.23 per
share of common stock on September 15, 2008, the last
trading day before we announced the Merger Agreement, and $50.98
per share on September 29, 2008, the last trading day before the
date of this Offer to Purchase. If the Offer is successful, we
expect the Shares to continue to be traded on NASDAQ until the
time of the Merger, although we expect trading volume to be
significantly below its pre-Offer level. Please note that the
time period between completion of the Offer and the Merger may
be very short, potentially less than one trading day. See
Section 6 — “Price Range of the Shares;
Dividends” of this Offer to Purchase for further details.
Will I
have appraisal rights in connection with the tender
offer?
No, Datascope stockholders will not have appraisal rights in
connection with the Offer. However, if the Merger is
consummated, holders of the Shares at the effective time of the
Merger will have certain rights under the provisions of 262 of
the General Corporation Law of the State of Delaware, including
the right to dissent from the Merger and demand appraisal of,
and to receive payment in cash of the fair value of, their
Shares. For more information, see Section 11 —
“Purpose of the Offer; the Merger Agreement; Statutory
Requirements; Dissenters’ Rights; ‘Going Private’
Transactions; Plans for Datascope.”
vi
Table of Contents
What are
the material federal income tax consequences of tendering
Shares?
The sale or exchange of Shares pursuant to the Offer or the
Merger will be a taxable transaction for U.S. federal
income tax purposes. In general, a Datascope stockholder that
sells Shares pursuant to the Offer or receives cash in exchange
for Shares pursuant to the Merger should recognize gain or loss
for U.S. federal income tax purposes equal to the
difference, if any, between the amount of cash received and the
Datascope stockholder’s tax basis in the Shares sold or
exchanged. See Section 5— “Material
U.S. Federal Income Tax Consequences” of this Offer to
Purchase for further details.
Who
should I call if I have questions about the tender offer? Where
do I get additional copies of the offer documents?
You may call Xxxxxxxxx, Inc., the Information Agent for the
Offer, at
(000) 000-0000
if you are a banker or broker and toll-free at
(000) 000-0000
if you are not a banker or broker. You may also contact the
Depositary or Merrill, Xxxxx, Xxxxxx, Xxxxxx & Xxxxx
Incorporated, the Dealer Manager for the Offer, at the contact
information on the back cover of this Offer to Purchase.
vii
Table of Contents
To: All Holders of Shares of Common Stock of
Datascope Corp.:
INTRODUCTION
DaVinci Merger Sub, Inc., a Delaware corporation
(“Purchaser”) and an indirect wholly owned subsidiary
of Getinge AB, a Swedish Aktiebolag (“Getinge”), is
offering to purchase all outstanding shares of common stock, par
value $0.01 per share (the “Shares”), of Datascope
Corp., a Delaware corporation (“Datascope”), together
with the associated Rights (the “Rights”) issued
pursuant to the Rights Agreement, dated May 22, 1991, as
amended, by and between Datascope and Continental Stock
Transfer & Trust Company, a New York corporation,
as rights agent (the “Rights Agreement”), at a
purchase price of $53.00 per Share, net to the seller in cash,
without interest and subject to any required withholdings of
taxes (such amount or any different amount per Share that may be
paid pursuant to the Offer, the “Offer Price”), on the
terms and subject to the conditions set forth in this Offer to
Purchase and in the related Letter of Transmittal (which,
together with any amendments or supplements to the Offer to
Purchase and the Letter of Transmittal, collectively constitute
the “Offer”).
The Offer is being made pursuant to an Agreement and Plan of
Merger, dated as of September 15, 2008 (the “Merger
Agreement”), among Getinge, Purchaser and Datascope.
Purchaser is not required to purchase any Shares unless at least
a majority of Datascope’s fully diluted Shares (assuming
the exercise of any outstanding warrants and further assuming
the grant and exercise of all options available for grant under
the Datascope’s equity incentive plans) are validly
tendered and not properly withdrawn prior to the expiration of
the Offer (the “Minimum Condition”). The Offer also is
subject to certain other terms and conditions. See
Sections 1 — “Terms of the Offer,”
14 — “Conditions of the Offer” and
15 — “Legal Matters; Required Regulatory
Approvals.” After the completion of the Offer and the
satisfaction or waiver of certain conditions, Purchaser will
merge with and into Datascope (the “Merger”).
The tendering Datascope stockholders that are record owners of
their Shares and tender directly to American Stock
Transfer & Trust Company, LLC (the
“Depositary”) will not be obligated to pay brokerage
fees or commissions or, except as otherwise provided in
Instruction 6 of the Letter of Transmittal, stock transfer
taxes with respect to the purchase of Shares by Purchaser
pursuant to the Offer. Datascope stockholders that hold their
Shares through banks or brokers should check with those
institutions to determine whether they charge a service fee. If
a Datascope stockholder does not complete and sign the
Substitute
Form W-9
that is included in the Letter of Transmittal, he or she may be
subject to a required backup U.S. federal income tax
withholding of 28% of the gross proceeds payable to that
Datascope stockholder. See Section 3 —
“Procedures for Accepting the Offer and Tendering
Shares.” Purchaser will pay all charges and expenses of the
Depositary, Xxxxxxxxx, Inc. (the “Information Agent”)
and Xxxxxxx Lynch, Xxxxxx, Xxxxxx & Xxxxx Incorporated
(the “Dealer Manager”) incurred in connection with the
Offer. See Section 16 — “Fees and
Expenses.”
The Datascope board of directors has unanimously
(i) approved and adopted the Merger Agreement and declared
the Merger Agreement, the Offer, the Merger and the transactions
contemplated by the Merger Agreement advisable and in the best
interests of the Datascope stockholders; (ii) determined to
take all action necessary to render the restrictions on business
combinations and voting requirements contained in
Section 203 of the General Corporation Law of the State of
Delaware (the “DGCL”), if applicable, inapplicable to
each of the Offer and the Merger; and (iii) recommended
that the Datascope stockholders accept the Offer, tender their
Shares in the Offer to Purchaser and adopt the Merger Agreement
and the Merger to the extent required by applicable law.
Upon the terms and subject to the conditions of the Offer
(including, if the Offer is extended or amended, the terms and
conditions of any extension or amendment), Purchaser will
purchase all Shares validly tendered and not properly withdrawn
on or prior to the Expiration Date (as defined below) in
accordance with the procedures set forth in
Section 3 — “Procedures for Accepting the
Offer and Tendering Shares.” “Expiration Date”
means 12:00 midnight, New York City time, at the end of Tuesday,
October 28, 2008, unless Purchaser determines to extend the
period of time for which the initial offering period of the
Offer is open, in which case “Expiration Date” will
mean the time and date at which the initial offering period of
the Offer, as so extended, will expire. Purchaser (a) must
extend the Offer for one or more periods of five business days
if, at
Table of Contents
the scheduled Expiration Date, any of the conditions of the
Offer (see Section 14 — “Conditions of the
Offer”) have not been satisfied or waived, and
(b) may, without the consent of Datascope, commence a
subsequent offering period for three to twenty business days for
the Shares if all of the conditions of the Offer are satisfied
but the number of Shares validly tendered and not properly
withdrawn in the Offer, together with any Shares then owned by
Getinge, is less than 90% of the outstanding Shares. Purchaser
shall also extend the Offer for any period required by any rule,
regulation, interpretation or position of the NASDAQ Market, the
Securities and Exchange Commission (the “SEC”) or the
staff of the SEC applicable to the Offer. See
Section 3 — “Procedures for Accepting the
Offer and Tendering Shares.”
Following the consummation of the Offer and the satisfaction or
waiver of certain conditions, the Merger will occur, pursuant to
which Purchaser will merge with and into Datascope, with
Datascope continuing as the surviving corporation (the
“Surviving Corporation”) after the Merger. In the
Merger, each Share outstanding immediately prior to the
effective time of the Merger (other than Shares held by
Datascope, Getinge or Purchaser, all of which will be canceled
and shall cease to exist, and Shares owned by Datascope
stockholders who have properly exercised dissenters’ rights
under Section 262 of the DGCL) will be converted into the
right to receive the Offer Price. Section 11(b) contains a
more detailed description of the Merger Agreement.
Section 5 describes the principal U.S. federal income
tax consequences of the sale of Shares in the Offer (including
any subsequent offering period) and the Merger.
Approval of the Merger requires the affirmative vote of holders
of a majority of the outstanding Shares. If the Minimum
Condition and the other conditions to the Offer are satisfied or
waived and the Offer is completed, Purchaser will own a
sufficient number of Shares to ensure that the Merger will be
approved by Datascope stockholders. See
Section 11 — “Purpose of the Offer; the
Merger Agreement; Statutory Requirements; Dissenters’
Rights; ‘Going Private’ Transactions; Plans for
Datascope.”
On September 15, 2008, Xxxxxx Brothers Inc.
(“Xxxxxx”) rendered its opinion to the Datascope board
of directors that, as of such date, and based on and subject to
the matters stated in its opinion, from a financial point of
view, the consideration to be offered to and received by
Datascope’s stockholders in the Offer and Merger was fair
to such stockholders. A copy of Xxxxxx’x opinion is
included with Datascope’s Solicitation/Recommendation
Statement on
Schedule 14D-9
(the
“Schedule 14D-9”),
which is being mailed with this Offer to Purchase, and Datascope
stockholders are urged to read the opinion in its entirety for a
description of the assumptions made, procedures followed,
factors considered and limitations on the review undertaken by
Xxxxxx in rendering its opinion. On September 22, 2008,
certain assets of Xxxxxx Brothers, including its North American
investment banking franchise, were acquired by Barclays Capital
Inc. This acquisition of Xxxxxx Brothers’ business occurred
after the delivery of the Xxxxxx Brothers’ fairness opinion
to the Datascope board of directors and the execution of the
Merger Agreement on September 15, 2008.
The chairman and chief executive officer of Datascope has
entered into a voting agreement with Getinge to tender his
Shares in the Offer. To the knowledge of Datascope after
reasonable inquiry, each other executive officer, director,
affiliate or subsidiary of Datascope who owns Shares currently
intends to tender in the Offer all Shares that he or she owns of
record or beneficially or to sell all such Shares prior to the
consummation of the Offer, other than Shares, if any, that he or
she may have the right to purchase by exercising stock options,
similar rights to acquire Shares, restricted Shares that remain
subject to a risk of forfeiture and Shares, if any, that if
tendered would cause him or her to incur liability under the
short-swing profits provisions of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). The foregoing
does not include any Shares over which, or with respect to
which, any such executive officer, director or affiliate acts in
a fiduciary or representative capacity or is subject to the
instructions of a third party with respect to such tender.
The Offer is conditioned upon the fulfillment of the
conditions described in Section 14 —
“Conditions of the Offer.” The Offer and withdrawal
rights will expire at 12:00 midnight, New York City time, at the
end of Tuesday, October 28, 2008, unless the Offer is
extended.
This Offer to Purchase and the related Letter of Transmittal
contain important information that Datascope stockholders should
read carefully before making any decision with respect to the
Offer.
2
Table of Contents
1. | TERMS OF THE OFFER |
Upon the terms and subject to the conditions of the Offer
(including, if the Offer is extended or amended, the terms and
conditions of any extension or amendment), Purchaser will
purchase all Shares validly tendered and not properly withdrawn
on or prior to the Expiration Date in accordance with the
procedures set forth in Section 3 —
“Procedures for Accepting the Offer and Tendering
Shares.” The Expiration Date for the Offer is currently
scheduled for 12:00 midnight, New York City time, at the end of
October 28, 2008. Datascope stockholders may withdraw their
Shares previously tendered at any time on or prior to the
Expiration Date, as it may be extended from time to time. See
Section 4 — “Withdrawal Rights.” If, at
the Expiration Date, the conditions to the Offer described in
Section 14 — “Conditions of the Offer”
have not been satisfied or earlier waived, then, subject to the
provisions of the Merger Agreement, Purchaser shall extend the
Expiration Date for one or more periods of five business days.
Purchaser shall also extend the Offer for any period required by
any rule, regulation, interpretation or position of NASDAQ or
the SEC or the staff of the SEC. During any such extension, all
Shares previously tendered and not withdrawn will remain subject
to the Offer and subject to your right to withdraw your Shares.
Purchaser also has agreed in the Merger Agreement that, if at
the Expiration Date, all conditions of the Offer have been
satisfied but the number of Shares that have been validly
tendered and not properly withdrawn in the Offer (together with
any Shares then owned by Getinge) is less than 90% of the
outstanding Shares, Purchaser may, without the consent of
Datascope and in compliance with applicable law, provide a
subsequent offering period. A subsequent offering period, if one
is provided, will allow Datascope stockholders to tender Shares
after the Expiration Date and receive the same consideration
that was paid in the Offer. Pursuant to the Merger Agreement, if
Purchaser elects to have a subsequent offering period, the
subsequent offering period will not be shorter than three
business days nor longer than twenty (20) business days,
with the exact number of days to be determined at
Purchaser’s election. In a subsequent offering period,
Shares may be tendered using the same procedures applicable to
the Offer (except that Shares tendered may not be withdrawn),
and Purchaser will immediately accept and promptly pay for
Shares as they are tendered. In the event that Purchaser elects
to extend the Offer or provide a subsequent offering period, it
will provide an announcement to that effect to a national news
service no later than 9:00 a.m., New York City time, on the
next business day after the previously scheduled Expiration Date.
Subject to the applicable regulations of the SEC and the terms
of the Merger Agreement, Purchaser also reserves the right, at
any time or from time to time, to (a) delay purchase of,
or, payment for, any Shares, pending receipt of any regulatory
or governmental approvals specified in
Section 15 — “Legal Matters; Required
Regulatory Approvals” or if any condition referred to in
Section 14 — “Conditions of the Offer”
has not been satisfied or upon the occurrence of any event
specified in Section 14; (b) after the Expiration
Date, allow the Offer to expire if any condition referred to in
Section 14 — “Conditions of the Offer”
has not been satisfied or upon the occurrence of any event
specified in Section 14; and (c) except as set forth
in the Merger Agreement, waive any condition to the Offer (other
than the Minimum Condition, which only may be waived with
Datascope’s prior written consent) or otherwise amend the
Offer in any respect; in each case, by giving oral notice,
followed by written notice, of the delay, termination, waiver or
amendment to the Depositary. Purchaser acknowledges
(a) that
Rule 14e-1(c)
under the Exchange Act requires Purchaser to pay the
consideration offered or return the Shares tendered promptly
after the termination or withdrawal of the Offer and
(b) that Purchaser may not delay purchase of, or payment
for (except as provided in clause (a) of the preceding
sentence), any Shares upon the occurrence of any event specified
in Section 14 — “Conditions of the
Offer” without extending the period of time during which
the Offer is open.
The rights that Purchaser reserves in the preceding paragraph
are in addition to its rights pursuant to
Section 14 — “Conditions of the Offer.”
Any extension, delay, termination, waiver or amendment will be
followed promptly by public announcement. The announcement, in
the case of an extension, will be made no later than
9:00 a.m., New York City time, on the next business day
after the previously scheduled Expiration Date. Subject to
applicable law, and without limiting the manner in which Getinge
and Purchaser may choose to make any public announcement,
Getinge and Purchaser will have no obligation to publish,
advertise or otherwise communicate any public announcement other
than by issuing a press release to a national news service.
3
Table of Contents
If Purchaser makes a material change in the terms of the Offer,
or if Purchaser waives a material condition to the Offer,
Purchaser will extend the Offer and disseminate additional
tender offer materials to the extent required by applicable law
and the applicable regulations of the SEC. If, on or prior to
the Expiration Date, Purchaser decreases the number of Shares
being sought (which would require the consent of Datascope), or
increases or decreases the consideration offered pursuant to the
Offer (which would require the consent of Datascope), and if the
Offer is scheduled to expire at any time earlier than the period
ending on the tenth business day from the date that notice of
the increase or decrease is first published, sent or given to
Datascope stockholders, Purchaser will extend the Offer at least
until the expiration of that period of ten business days. For
purposes of the Offer, a “business day” means any day
other than a Saturday, Sunday or other day on which banking
institutions are required or authorized by law to be closed in
New York, New York.
The Offer is conditioned upon, among other things, the
satisfaction of the Minimum Condition. See
Section 14 — “Conditions of the Offer.”
Consummation of the Offer also is conditioned upon expiration or
termination of the waiting period (and any extension thereof)
imposed by the
U.S. Xxxx-Xxxxx-Xxxxxx
Antitrust Improvements Act of 1976, as amended (including the
rules and regulations promulgated thereunder, the “HSR
Act”), the absence of any Materially Burdensome Condition
(as defined in Section 11 — “Purpose of the
Offer; the Merger Agreement; Statutory Requirements;
Dissenters’ Rights; ‘Going Private’ Transactions;
Plans for Datascope”) imposed in connection with obtaining
any such approvals or terminations, and the satisfaction or
waiver of other conditions set forth in
Section 14 — “Conditions of the Offer.”
Purchaser reserves the right (but is not obligated), in
accordance with applicable rules and regulations of the SEC and
with the Merger Agreement, to waive any or all of those
conditions other than the Minimum Condition, which only may be
waived with Datascope’s prior written consent.
Datascope has provided Getinge and Purchaser with its
stockholder lists and security position listings for the purpose
of disseminating the Offer to Datascope stockholders. Getinge
and Purchaser will mail this Offer to Purchase, the related
Letter of Transmittal and other relevant materials to record
holders of Shares, and Getinge and Purchaser will furnish the
materials to brokers, dealers, commercial banks, trust companies
and similar persons whose names, or the names of whose nominees,
appear on the security holder lists or, if applicable, that are
listed as participants in a clearing agency’s security
position listing, for forwarding to beneficial owners of Shares.
2. | ACCEPTANCE FOR PAYMENT AND PAYMENT FOR SHARES |
Upon the terms and subject to the conditions of the Offer
(including if Purchaser extends or amends the Offer, the terms
and conditions of the Offer as so extended or amended) and the
applicable regulations of the SEC, Purchaser will purchase, by
accepting for payment, and will pay for, all Shares validly
tendered and not properly withdrawn (as permitted by
Section 4 — “Withdrawal Rights”) on or
prior to the Expiration Date, promptly after the Expiration Date
and following the satisfaction or waiver of the conditions to
the Offer set forth in Section 14 —
“Conditions of the Offer.” If Purchaser elects to
effect a subsequent offering period, Purchaser will immediately
accept and promptly pay for Shares as they are tendered during
the subsequent offering period.
For information with respect to approvals that Getinge and
Purchaser must obtain prior to the completion of the Offer,
including under the HSR Act and other laws and regulations, see
Section 15 — “Legal Matters; Required
Regulatory Approvals.”
In all cases, Purchaser will pay for Shares purchased in the
Offer only after timely receipt by the Depositary of
(a) certificates representing the Shares (“Share
Certificates”) or timely confirmation of the book-entry
transfer of the Shares (a “Book-Entry Confirmation”)
into the Depositary’s account at The Depository
Trust Company (the “Book-Entry Transfer
Facility”) pursuant to the procedures set forth in
Section 3 — “Procedures for Accepting the
Offer and Tendering Shares”; (b) the appropriate
Letter of Transmittal (or a facsimile), properly completed and
duly executed, with any required signature guarantees (or an
Agent’s Message (as defined below) in connection with a
book-entry transfer); and (c) any other documents required
by the Letter of Transmittal.
4
Table of Contents
“Agent’s Message” means a message
transmitted by the Book-Entry Transfer Facility to, and received
by, the Depositary and forming a part of a Book-Entry
Confirmation, which message states that the Book-Entry Transfer
Facility has received an express acknowledgment from the
participant tendering the Shares subject to the Book-Entry
Confirmation that the participant has received and agrees to be
bound by the terms of the Letter of Transmittal and that
Purchaser may enforce the Letter of Transmittal against the
participant.
For purposes of the Offer, Purchaser will be deemed to have
accepted for payment and purchased Shares validly tendered and
not properly withdrawn as, if and when Purchaser gives oral or
written notice to the Depositary of its acceptance of the Shares
for payment pursuant to the Offer. In all cases, upon the terms
and subject to the conditions of the Offer, payment for Shares
purchased pursuant to the Offer will be made by deposit of the
purchase price for the Shares with the Depositary, which will
act as agent for tendering Datascope stockholders for the
purpose of receiving payment from Purchaser and transmitting
payment to validly tendering Datascope stockholders.
If Purchaser does not purchase any tendered Shares pursuant to
the Offer for any reason, or if a Datascope stockholder submits
Share Certificates representing more Shares than he or she
wishes to tender, Purchaser will return Share Certificates
representing unpurchased or untendered Shares, without expense
to you (or, in the case of Shares delivered by book-entry
transfer into the Depositary’s account at the Book-Entry
Transfer Facility pursuant to the procedures set forth in
Section 3 — “Procedures for Accepting the
Offer and Tendering Shares,” Shares will be credited to an
account maintained within the Book-Entry Transfer Facility), as
promptly as practicable following the expiration, termination or
withdrawal of the Offer.
If, on or prior to the Expiration Date, Purchaser adjusts the
price offered to Datascope stockholders in the Offer, Purchaser
will pay the adjusted price to all Datascope stockholders from
whom Purchaser purchases Shares in the Offer, whether or not
Shares were tendered before the adjustment in price. As of the
date of this Offer to Purchase, Purchaser has no intention to
adjust the price in the Offer.
Purchaser reserves the right, subject to the provisions of the
Merger Agreement, to transfer or assign, in whole or from time
to time in part, to one or more of its subsidiaries or
affiliates, the right to purchase all or any portion of the
Shares tendered in the Offer, but any such transfer or
assignment will not relieve Purchaser of its obligations under
the Offer or prejudice your rights to receive payment for Shares
validly tendered and accepted for payment in the Offer. In
addition, any such transfer or assignment may require the
Expiration Date of the Offer to be extended under applicable law.
3. | PROCEDURES FOR ACCEPTING THE OFFER AND TENDERING SHARES |
Valid Tender of Shares. Except as set forth
below, in order for a Datascope stockholder to tender Shares in
the Offer, the Depositary must receive, on or prior to the
Expiration Date, the Letter of Transmittal (or a facsimile),
properly completed and signed, together with any required
signature guarantees (or an Agent’s Message in connection
with a book-entry delivery of Shares), and any other documents
that the Letter of Transmittal requires, at one of the
Depositary’s addresses set forth on the back cover of this
Offer to Purchase. In addition, the tendering stockholder must,
on or prior to the Expiration Date, either (a) deliver
Share Certificates to the Depositary or cause his or her Shares
to be tendered pursuant to the procedure for book-entry transfer
set forth below and the Depositary must receive Book-Entry
Confirmation, or (b) the tendering stockholder must comply
with the guaranteed delivery procedures set forth below. If
Share Certificates are forwarded separately to the Depositary, a
properly completed and duly executed Letter of Transmittal (or a
facsimile) must accompany each delivery of Share Certificates.
The method of delivery of Share Certificates, the Letter of
Transmittal and all other required documents, including delivery
through the Book-Entry Transfer Facility, is at the tendering
stockholder’s option and sole risk, and delivery will be
considered made only when actually received by the Depositary
(including, in the case of a book-entry transfer, by Book-Entry
Confirmation). If delivery is by mail, registered mail with
return receipt requested, properly insured, is encouraged and
strongly recommended. In all cases, a tendering stockholder
should allow sufficient time to ensure timely delivery on or
prior to the Expiration Date.
5
Table of Contents
Book-Entry Transfer. The Depositary will make
a request to establish an account with respect to Shares at the
Book-Entry Transfer Facility for purposes of the Offer within
two business days after the date of this Offer to Purchase. Any
financial institution that is a participant in the system of the
Book-Entry Transfer Facility may make book-entry delivery of
Shares by causing the Book-Entry Transfer Facility to transfer
the Shares into the Depositary’s account at the Book-Entry
Transfer Facility. However, although Shares may be delivered
through book-entry transfer into the Depositary’s account
at the Book-Entry Transfer Facility, the Depositary must
receive, on or before the Expiration Date, (i) the Letter
of Transmittal (or a facsimile), properly completed and signed,
with any required signature guarantees, or (ii) an
Agent’s Message, in each case, together with any other
required documents, at one of the Depositary’s addresses
set forth on the back cover of this Offer to Purchase, or the
tendering stockholder must comply with the guaranteed delivery
procedure set forth below.
Delivery of documents to a Book-Entry Transfer Facility does
not constitute delivery to the Depositary.
For Shares to be validly tendered during a subsequent offering
period, the tendering Datascope stockholder must comply with the
foregoing procedures, except that required documents and Share
Certificates must be received during the subsequent offering
period.
The tender of Shares pursuant to any one of the procedures
described above will constitute the tendering stockholder’s
acceptance of the Offer, as well as the tendering
stockholder’s representation and warranty that he or she
has the full power and authority to tender and assign the Shares
tendered, as specified in the Letter of Transmittal.
Purchaser’s acceptance for payment of Shares tendered
pursuant to the Offer will constitute a binding agreement
between Purchaser and the tendering stockholder upon the terms
and subject to the conditions of the Offer.
Signature Guarantees. A bank, broker, dealer,
credit union, savings association or other entity that is a
member in good standing of the Securities Transfer Agents
Medallion Program or any other “eligible guarantor
institution” (as defined in
Rule 17Ad-15
under the Exchange Act) (each, an “Eligible
Institution” and, collectively, “Eligible
Institutions”) must guarantee signatures on all Letters of
Transmittal, unless the Shares are tendered (a) by a
registered holder of Shares that has not completed either the
box labeled “Special Payment Instructions” or the box
labeled “Special Delivery Instructions” in the Letter
of Transmittal or (b) for the account of an Eligible
Institution. See “Important Tax Information” in of the
Letter of Transmittal for further details.
If Share Certificates are registered in the name of a person
other than the person executing the Letter of Transmittal, or if
payment is to be made to, or Share Certificates for unpurchased
Shares are to be issued or returned to, a person other than the
registered holder, then the tendered Share Certificates must be
endorsed or accompanied by appropriate stock powers, signed
exactly as the name or names of the registered holder or holders
appear on Share Certificates, with the signatures on the Share
Certificates or stock powers guaranteed by an Eligible
Institution as provided in the Letter of Transmittal. See
Instructions 1 and 5 of the Letter of Transmittal for
further details. Any Notice of Guaranteed Delivery, as discussed
below, will also require a guarantee by an Eligible Institution.
Guaranteed Delivery. If a Datascope
stockholder wants to tender Shares in the Offer and his or her
Share Certificates are not immediately available or time will
not permit all required documents to reach the Depositary on or
before the Expiration Date, or the procedures for book-entry
transfer cannot be completed on time, the stockholder’s
Shares may nevertheless be tendered if he or she complies with
all of the following guaranteed delivery procedures:
• | the tender is made by or through an Eligible Institution; | |
• | the Depositary receives, on or before the Expiration Date, as described below, a properly completed and signed Notice of Guaranteed Delivery, substantially in the form made available by Purchaser; and | |
• | the Depositary receives the Share Certificates (or a Book-Entry Confirmation) representing all tendered Shares in proper form for transfer, together with a properly completed and duly executed Letter of Transmittal (or a facsimile), with any required signature guarantees (or, in the case of a book-entry |
6
Table of Contents
transfer, an Agent’s Message) and any other documents required by the Letter of Transmittal, within three NASDAQ trading days after the date of execution of the Notice of Guaranteed Delivery. |
Delivery of the Notice of Guaranteed Delivery may be made by
hand, mail or facsimile transmission to the Depositary. The
Notice of Guaranteed Delivery must include a guarantee by an
Eligible Institution in the form set forth in the Notice of
Guaranteed Delivery.
Notwithstanding any other provision of the Offer, Purchaser will
pay for Shares only after timely receipt by the Depositary of
(i) Share Certificates for, or Book-Entry Confirmation with
respect to, the Shares, (ii) a properly completed and duly
executed Letter of Transmittal (or facsimile), together with any
required signature guarantees (or, in the case of a book-entry
transfer, an Agent’s Message) and (iii) any other
documents required by the Letter of Transmittal. Accordingly,
payment might not be made to all tendering Datascope
stockholders at the same time, and the timing of payment will
depend on when the Depositary receives Share Certificates or
Book-Entry Confirmation that the Shares have been transferred
into the Depositary’s account at the Book-Entry Transfer
Facility.
Backup U.S. Federal Income Tax
Withholding. Under U.S. federal income tax
law, the Depositary may be required to withhold and pay over to
the U.S. Internal Revenue Service a portion of the amount
of any payments made pursuant to the Offer. To avoid backup
withholding, unless an exemption applies, a Datascope
stockholder that is a U.S. person (as defined for
U.S. federal income tax purposes) must provide the
Depositary with the stockholder’s correct taxpayer
identification number (“TIN”) and certify under
penalties of perjury that the TIN is correct and that the
Datascope stockholder is not subject to backup withholding, by
completing the Substitute
Form W-9
in the Letter of Transmittal. If a stockholder does not provide
its correct TIN or fails to provide the certifications described
above, the U.S. Internal Revenue Service may impose a
penalty on the Datascope stockholder, and any payment made to
the stockholder pursuant to the Offer may be subject to backup
withholding. All Datascope stockholders surrendering Shares
pursuant to the Offer that are U.S. persons should complete
and sign the Substitute
Form W-9
included in the Letter of Transmittal to provide the information
and certifications necessary to avoid backup withholding (unless
an applicable exemption exists and is proved in a manner
satisfactory to the Depositary). Certain Datascope stockholders
(including, among others, all corporations and certain foreign
individuals and entities) may not be subject to backup
withholding. Foreign Datascope stockholders should complete and
sign the appropriate
Form W-8
(a copy of which may be obtained from the Depositary) in order
to avoid backup withholding. These Datascope stockholders should
consult a tax advisor to determine which
Form W-8
is appropriate. See Instruction 11 of the Letter of
Transmittal for further details.
Backup withholding is not an additional tax. Any amounts
withheld under the backup withholding rules from payments made
to a Datascope stockholder may be refunded or credited against
the Datascope stockholder’s U.S. federal income tax
liability, if any, provided that the required information is
furnished to the U.S. Internal Revenue Service.
Appointment as Proxy. By executing the Letter
of Transmittal, a Datascope stockholder irrevocably appoints
Purchaser’s designees, and each of them, as his or her
agents, attorneys-in-fact and proxies, with full power of
substitution, in the manner set forth in the Letter of
Transmittal, to the full extent of such stockholder’s
rights with respect to Shares that he or she tenders and that
Xxxxxxxxx accepts for payment and with respect to any and all
other Shares and other securities or rights issued or issuable
in respect of those Shares. All such powers of attorney and
proxies will be considered irrevocable and coupled with an
interest in the tendered Shares. This appointment will be
effective when Purchaser accepts the tendering
stockholder’s Shares for payment in accordance with the
terms of the Offer. Upon acceptance for payment, all other
powers of attorney and proxies given by a tendering stockholder
with respect to his or her Shares and other securities or rights
prior to such payment will be revoked, without further action,
and no subsequent powers of attorney and proxies may be given by
the stockholder (and, if given, will not be deemed effective).
Purchaser’s designees will, with respect to the Shares and
other securities and rights for which the appointment is
effective, be empowered to exercise all of the tendering
stockholder’s voting and other rights as they, in their
sole discretion, may deem proper at any annual or special
meeting of Datascope stockholders, or any adjournment or
postponement thereof, or by consent in lieu of any such meeting
of Datascope stockholders or
7
Table of Contents
otherwise. In order for Shares to be deemed validly tendered,
immediately upon the acceptance for payment of such Shares,
Purchaser or its designee must be able to exercise full voting
rights with respect to Shares and other securities, including
voting at any meeting of Datascope stockholders.
Determination of Validity. All questions as to
the form of documents and the validity, eligibility (including
time of receipt) and acceptance for payment of any tender of
Shares will be determined by Purchaser, in its sole discretion,
which determination will be final and binding on all parties.
Purchaser reserves the absolute right, subject to the terms of
the Merger Agreement and applicable law, to reject any or all
tenders determined by Purchaser not to be in proper form or the
acceptance of or payment for which may, in the opinion of
Purchaser’s counsel, be unlawful. Purchaser also reserves
the absolute right to waive any of the conditions of the Offer,
except the Minimum Condition (which waiver requires
Datascope’s prior written consent) or any defect or
irregularity in any tender of Shares by any particular Datascope
stockholder, whether or not similar defects or irregularities
are waived in the case of other Datascope stockholders.
Purchaser’s interpretation of the terms and conditions of
the Offer will be final and binding. No tender of Shares will be
deemed to have been validly made until all defects and
irregularities with respect to the tender have been cured or
waived by Purchaser. None of Getinge, Purchaser or any of their
respective affiliates or assigns, the Depositary, the
Information Agent or any other person or entity will be under
any duty to give any notification of any defects or
irregularities in tenders or incur any liability for failure to
give any such notification.
4. | WITHDRAWAL RIGHTS |
Other than during a subsequent offering period, a tendering
stockholder may withdraw Shares that he or she has previously
tendered in the Offer at any time on or before the Expiration
Date (including any extension of such date), and, unless
previously accepted for payment as provided in this Offer to
Purchase, a tendering stockholder may also withdraw such Shares
at any time after November 29, 2008. No withdrawal
rights apply to Shares tendered in a subsequent offering period
and no withdrawal rights apply during the subsequent offering
period with respect to Shares tendered and accepted for
payment.
If, for any reason, acceptance for payment of any Shares
tendered in the Offer is delayed, or Purchaser is unable to
accept for payment or pay for Shares tendered in the Offer,
then, without prejudice to Purchaser’s rights set forth in
this Offer to Purchase, the Depositary may, nevertheless, on
Purchaser’s behalf, retain Shares that tendering
stockholders’ have tendered, and they may not withdraw
their Shares, except to the extent that they duly exercise
withdrawal rights as described in this
Section 4 — “Withdrawal Rights.” Any
such delay will be by an extension of the Offer to the extent
required by applicable law and the regulations of the SEC.
In order for a tendering stockholder’s withdrawal to be
effective, he or she must deliver a written, telegraphic or
facsimile transmission notice of withdrawal to the Depositary at
one of its addresses or fax number set forth on the back cover
of this Offer to Purchase. Any such notice of withdrawal must
specify the stockholder’s name, the number of Shares that
he or she wants to withdraw, and, if Share Certificates have
been tendered, the name of the registered holder of Shares as
shown on the Share Certificate, if different from the tendering
stockholder’s name, and the serial numbers shown on the
particular Share Certificates evidencing Shares to be withdrawn.
An Eligible Institution must guarantee the signature on the
notice of withdrawal, except in the case of Shares tendered for
the account of an Eligible Institution. If Shares have been
tendered pursuant to the procedures for book-entry transfer set
forth in Section 3 — “Procedures for
Accepting the Offer and Tendering Shares,” the notice of
withdrawal must specify the name and number of the account at
the Book-Entry Transfer Facility to be credited with the
withdrawn Shares. A tendering stockholder may not rescind a
withdrawal of Shares. Any Shares that a tendering stockholder
withdraws will be considered not validly tendered for purposes
of the Offer, but such stockholder may tender his or her Shares
again at any time on or before the Expiration Date by following
any of the procedures described in Section 3 —
“Procedures for Accepting the Offer and Tendering
Shares.”
All questions as to the form and validity (including time of
receipt) of notices of withdrawal will be determined by
Purchaser, in its sole discretion, which determination will be
final and binding. None of Getinge, Purchaser or any of their
respective affiliates or assigns, the Depositary, the
Information Agent or any
8
Table of Contents
other person or entity will be under any duty to give any
notification of any defects or irregularities in any notice of
withdrawal or incur any liability for failure to give any such
notification.
5. | MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES |
Your receipt of cash for Shares in the Offer, the subsequent
offering period (if one is provided) or the Merger will be a
taxable transaction for U.S. federal income tax purposes.
For U.S. federal income tax purposes, if you sell or
convert your Shares in the Offer, the subsequent offering period
(if one is provided) or the Merger, you generally should
recognize gain or loss equal to the difference between the
amount of cash received and your tax basis in the Shares that
you sold or exchanged. That gain or loss will be capital gain or
loss (assuming you hold your Shares as a capital asset), and any
such capital gain or loss will be long term if, as of the date
of sale or exchange, you have held such Shares for more than one
year. The discussion above may not be applicable to certain
types of Datascope stockholders, including Datascope
stockholders who acquired Shares through the exercise of
employee stock options or otherwise as compensation, individuals
who are not citizens or residents of the U.S., foreign
corporations, or entities that are otherwise subject to special
tax treatment under the U.S. Internal Revenue Code of 1986,
as amended (including the rules and regulations promulgated
thereunder, the “Code”) (such as insurance companies,
tax-exempt entities and regulated investment companies).
You are urged to consult your tax advisor with respect to the
specific tax consequences to you of the sale of your Shares in
the Offer or the conversion of your shares in the Merger,
including U.S. federal, state, local and foreign tax
consequences.
6. | PRICE RANGE OF THE SHARES; DIVIDENDS |
The Shares are traded on the NASDAQ Global Select Market
(“NASDAQ”) under the symbol “DSCP.” The
following table sets forth, for the periods indicated, the
reported high and low sale prices for the Shares on NASDAQ
during each quarter presented.
Datascope
Corp.
High | Low | |||||||
Fiscal 2007
|
||||||||
First Quarter
|
$ | 35.49 | $ | 29.41 | ||||
Second Quarter
|
$ | 36.85 | $ | 32.65 | ||||
Third Quarter
|
$ | 37.52 | $ | 33.88 | ||||
Fourth Quarter
|
$ | 38.62 | $ | 35.25 | ||||
Fiscal 2008
|
||||||||
First Quarter
|
$ | 39.72 | $ | 30.32 | ||||
Second Quarter
|
$ | 39.29 | $ | 34.17 | ||||
Third Quarter
|
$ | 41.43 | $ | 32.42 | ||||
Fourth Quarter
|
$ | 48.31 | $ | 37.46 | ||||
Fiscal 2009
|
||||||||
First Quarter (through September 29, 2008)
|
$ | 52.25 | $ | 46.00 |
Since its initial public offering in 1972, Datascope has
occasionally declared or paid cash dividends on its capital
stock. Under the terms of the Merger Agreement, without
Getinge’s prior consent, Datascope is not permitted to
declare or pay dividends with respect to the Shares, other than
quarterly cash dividends as historically distributed by
Datascope consistent with past practice and amounts.
On September 15, 2008, the last full day of trading prior
to the announcement of the execution of the Merger Agreement,
the reported closing price on NASDAQ for the Shares was $49.23
per Share. On
9
Table of Contents
September 29, 2008, the last full day of trading prior to
the date of this Offer to Purchase, the reported closing price
on NASDAQ for the Shares was $50.98 per Share.
Datascope stockholders are urged to obtain current market
quotations for the Shares.
7. | POSSIBLE EFFECTS OF THE OFFER ON THE MARKET FOR THE SHARES; NASDAQ LISTING; EXCHANGE ACT REGISTRATION; MARGIN REGULATIONS |
Possible Effects of the Offer on the Market for the
Shares. The purchase of Shares pursuant to the
Offer will reduce the number of Shares that might otherwise
trade publicly and could adversely affect the liquidity and
market value of the remaining Shares held by the public. The
purchase of Shares pursuant to the Offer also can be expected to
reduce the number of holders of Shares. Neither Getinge nor
Purchaser can predict whether the reduction in the number of
Shares that might otherwise trade publicly would have an adverse
or beneficial effect on the market price for or marketability of
the Shares or whether it would cause future market prices to be
greater or less than the Offer price.
NASDAQ Listing. Depending upon the number of
Shares purchased pursuant to the Offer, the Shares no longer may
meet the standards set forth in NASDAQ’s published
guidelines for continued listing on NASDAQ. According to
NASDAQ’s published guidelines, NASDAQ would consider
delisting the Shares if, among other things (a) the number
of total stockholders falls below 400; (b) the market value
of publicly held Shares falls below $5,000,000; or (c) the
number of publicly held Shares (exclusive of Shares held by
officers, directors, or beneficial owners of 10% or more) falls
below 750,000. In the event of delisting, the market for Shares
would be adversely affected. If the Shares were no longer listed
on NASDAQ, it is possible that the Shares would trade on another
securities exchange or in the over-the-counter market and that
price quotations might still be available from such other
sources.
Exchange Act Registration. The Shares
currently are registered under the Exchange Act. The purchase of
the Shares pursuant to the Offer may result in the Shares
becoming eligible for deregistration under the Exchange Act.
Registration of the Shares may be terminated upon application by
Datascope to the SEC if the Shares are not listed on a
“national securities exchange” and there are fewer
than 300 record holders of Shares. Termination of registration
of the Shares under the Exchange Act would substantially reduce
the information that Datascope is required to furnish to
Datascope stockholders and the SEC and would make certain
provisions of the Exchange Act, such as the short-swing profit
recovery provisions of Section 16(b) of the Exchange Act
and the requirements of furnishing a proxy statement or
information statement in connection with stockholders’
meetings pursuant to Section 14(a) or 14(c) of the Exchange
Act and the related requirement of providing an annual report,
no longer applicable to Datascope. If the Shares are no longer
registered under the Exchange Act, the requirements of
Rule 13e-3
promulgated under the Exchange Act with respect to “going
private” transactions would no longer be applicable to
Datascope. In addition, the ability of “affiliates” of
Datascope and persons holding “restricted securities”
of Datascope to dispose of the securities pursuant to
Rule 144 promulgated under the U.S. Securities Act of
1933, as amended, may be impaired or, with respect to
affiliates, eliminated. If registration of the Shares under the
Exchange Act were terminated, the Shares would no longer be
“margin securities” or eligible for stock exchange
listing. Getinge and Purchaser believe that the purchase of the
Shares pursuant to the Offer may result in the Shares becoming
eligible for deregistration under the Exchange Act, and it would
be Purchaser’s intention to cause Datascope to take such
actions as are required to terminate such registration of the
Shares as soon as possible after successful completion of the
Offer if the Shares are then eligible for termination.
If registration of the Shares is not terminated prior to the
Merger, then the registration of the Shares under the Exchange
Act and the listing of the Shares on NASDAQ (unless delisted as
set forth in Section 7 — “NASDAQ
Listing”) will be terminated following the completion of
the Merger.
Margin Regulations. The Shares are currently
“margin securities” under the regulations of the Board
of Governors of the Federal Reserve System, which regulations
have the effect, among other things, of allowing brokers to
extend credit on the collateral of the Shares for the purpose of
buying, carrying or trading in securities (“Purpose
Loans”). Depending on certain factors, such as the number
of record holders of Shares and the number and market value of
publicly held Shares following the purchase of Shares pursuant
to the
10
Table of Contents
Offer, the Shares might no longer constitute “margin
securities” for purposes of the Federal Reserve
Board’s margin regulations, and, therefore, could no longer
be used as collateral for Purpose Loans made by brokers. In
addition, if registration of the Shares under the Exchange Act
were terminated, the Shares would no longer constitute margin
securities.
8. | INFORMATION CONCERNING DATASCOPE |
Datascope is a Delaware corporation founded in 1964 with its
principal executive offices located at 00 Xxxxxxx Xxxxxxx,
Xxxxxxxx, XX 00000. Datascope’s telephone number is
(000) 000-0000.
Datascope is a global leader of intra-aortic balloon
counterpulsation and a diversified medical device company that
develops, manufactures and markets proprietary products for
clinical health care markets in interventional cardiology and
radiology, cardiovascular and vascular surgery, and critical
care. Datascope’s products are sold throughout the world
through direct sales representatives and independent
distributors. Datascope’s largest geographic markets are
the United States, Europe and Japan.
Datascope’s business may be divided into two segments,
Cardiac Assist Products and Vascular Products. The Cardiac
Assist Products segment accounted for 82% of total sales in
fiscal 2008. The Cardiac Assist Products segment sells
intra-aortic balloon pumps and catheters, endoscopic vessel
harvesting products and the
Safeguardtm
assisted pressure device. Datascope’s intra-aortic balloon
pump system is used in the treatment of cardiac shock, acute
heart failure, irregular heart rhythms, and for cardiac support
in open-heart surgery, coronary angioplasty, and stenting. The
balloon catheter serves as the pumping device within the
patient’s aorta. The Vascular Products segment sells a
proprietary line of knitted and woven polyester vascular grafts
and patches for reconstructive vascular and cardiovascular
surgery, peripheral vascular stent products and stent grafts.
The peripheral vascular products are used by vascular surgeons
and interventional radiologists for the treatment of peripheral
arterial disease. In June 2008, Datascope exercised its option
to acquire the Peripheral Vascular Stent business of the Sorin
Group of Milan and as part of the acquisition, received
exclusive, worldwide rights to use Sorin’s
Carbofibertm
technology and certain other intellectual property within the
endovascular field of use.
Effective May 1, 2008, Datascope sold its Patient
Monitoring business to Mindray Medical International Limited.
Datascope received approximately $209 million in cash at
the closing and retained approximately $30 million of
receivables generated by the Patient Monitoring business.
9. | INFORMATION CONCERNING GETINGE AND PURCHASER |
Getinge is a Swedish Aktiebolag with its principal executive
offices located at Getinge XX Xxxxxxxxxxxxx 00, Xxxxxxx, Xxxxxx
XX-310 44. Getinge’s telephone number is 00 (0) 00 00
00 00. Getinge is a publicly held Swedish company traded on the
Stockholm Stock Exchange. Getinge engages in several global
lines of business involving medical products
and/or
medical services. Getinge is organized into three primary
business units, including Medical Systems, Extended Care and
Infection Control.
All of Getinge’s primary business units are conducted in
the United States. In the United States, Getinge directly or
indirectly operates in all 50 states. Getinge directly or
indirectly owns or leases facilities in the United States,
including Rochester, NY, Roselle, IL, Bridgewater, NJ, Wayne, NJ
and San Jose, CA, Winter Springs, FL, Miami, FL and
Rush City, MN.
The Purchaser is a Delaware corporation and an indirect wholly
owned subsidiary of Getinge. The Purchaser was organized by
Getinge solely to acquire Datascope by undertaking the Offer and
the Merger and has not conducted any unrelated activities since
its organization. All outstanding shares of capital stock of the
Purchaser are indirectly wholly owned and controlled by Getinge.
The principal executive office of the Purchaser is located at 00
Xxxxx Xxxx Xxxxxx, Xxxx X, Xxxxxxx, Xxxxxxxx 00000.
The name, business address, citizenship, present principal
occupation and employment history for the past five years of
each of the directors and executive officers of Getinge and
Purchaser are set forth in Schedule I to this Offer to
Purchase.
11
Table of Contents
Except as described in this Offer to Purchase and in
Schedule I hereto, neither Getinge nor Purchaser nor, to
the best knowledge of Getinge and Purchaser, any of the persons
listed in Schedule I to this Offer to Purchase or any
associate or majority-owned subsidiary of Getinge or Purchaser
or the foregoing persons (i) beneficially owns or has any
right to acquire, directly or indirectly, any Shares or
(ii) has effected any transaction in the Shares during the
past sixty days.
Except as set forth in this Offer to Purchase, neither Getinge
nor Purchaser nor, to the best knowledge of Getinge and
Purchaser, any of the persons listed on Schedule I hereto,
has had any business relationship or transaction with Datascope
or any of its executive officers, directors or affiliates that
is required to be reported under the rules and regulations of
the SEC applicable to the Offer. Except as set forth in this
Offer to Purchase, there have been no contacts, negotiations or
transactions during the past two years between Getinge or
Purchaser or, to the best knowledge of Getinge and Purchaser,
any of the persons listed in Schedule I to this Offer to
Purchase, on the one hand, and Datascope or its subsidiaries or
affiliates, on the other hand, concerning a merger,
consolidation or acquisition, tender offer or other acquisition
of any class of securities, an election of directors or a sale
or other transfer of a material amount of assets.
Neither Getinge nor Purchaser nor, to the best knowledge of
Getinge and Purchaser, any of the persons listed in
Schedule I has, during the past five years (i) been
convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors) or (ii) been a party to any
judicial or administrative proceeding (except for matters that
were dismissed without sanction or settlement) that resulted in
a judgment, decree or final order enjoining them from future
violations of, or prohibiting activities subject to, federal or
state securities laws, or a finding any violation with respect
to such laws.
Available Information. Pursuant to
Rule 14d-3
under the Exchange Act, Getinge and Purchaser have filed with
the SEC a Tender Offer Statement on Schedule TO (the
“Schedule TO”), of which this Offer to Purchase
forms a part, and exhibits to the Schedule TO. The
Schedule TO and the exhibits thereto, can be inspected and
copied at the public reference facilities maintained by the SEC
at 000 X Xxxxxx, X.X., Xxxxxxxxxx, X.X.
00000-0213.
Information regarding the public reference facilities may be
obtained from the SEC by telephoning
1-800-SEC-0330.
Filings made with the SEC in connection with the Offer are also
available to the public on the SEC’s internet site
(xxxx://xxx.xxx.xxx).
Copies of such materials may also be obtained by mail from the
Public Reference Section of the SEC at 000 X Xxxxxx,
X.X., Xxxxxxxxxx, X.X.
00000-0212
at prescribed rates. In addition, Getinge files annual,
quarterly and current reports, proxy statements and other
information to the extent required by Swedish law, and
Getinge’s periodic reports are available to the public from
commercial document retrieval services and at Getinge’s
internet website
xxxx://xxx.xxxxxxxxxxxx.xxx/xxxxxxx.xxx?Xxxxxx _
financialreport.
10. | BACKGROUND OF THE OFFER; PAST CONTACTS OR NEGOTIATIONS WITH GETINGE |
During the fall of 2007, Getinge was contacted by Xxxxxx to
determine whether Getinge was interested in a transaction to
acquire all or part of Datascope. Getinge entered a
confidentiality agreement with Datascope in November 2007 but
Getinge concluded such a transaction would not be in the best
interests of Getinge’s stockholders at that time.
On June 4, 2008, Datascope publicly announced that it was
exploring strategic alternatives in response to expressions of
interest received.
During June 2008, Getinge was contacted by Xxxxxx to determine
whether Getinge was interested in a transaction to acquire all
or part of Datascope.
During July 2008, Getinge received initial marketing materials,
negotiated and entered into a confidentiality agreement, and
Datascope’s Confidential Information Memorandum, which
included information on the history, operations and projections
for future results with respect to Datascope.
On July 14, 2008, senior management of Getinge provided an
update on the potential acquisition of Datascope to
Getinge’s board of directors.
12
Table of Contents
On July 21, 2008, Getinge submitted a preliminary
indication of interest that valued Datascope at $48.00 per
Share. Subsequently, Datascope invited Getinge to a second round
the sale process.
On August 12, 2008, Getinge participated in management
presentations by Datascope for Getinge.
During the due diligence process, Getinge received individual
management presentations and was provided with access to certain
information concerning Datascope for purposes of conducting due
diligence and with the proposed form of merger agreement. The
proposed merger agreement contemplated that the successful
bidder would commence a two-step transaction with a cash tender
offer to acquire all of the Shares, followed by a cash merger.
Getinge continued its due diligence of Datascope and had a
number of conversations with representatives of Datascope and
its advisors. Getinge simultaneously negotiated the principal
terms of an arrangement with Skandinaviska Enskilda Xxxxxx XX
(publ) (“SEB”) in connection with Getinge’s
efforts to finance the transaction.
On August 25, 2008, senior management of Getinge and its
financial advisors provided Getinge’s board of directors an
update on the potential acquisition of Datascope.
On August 27, 2008, senior management of Getinge conducted
site visits at certain of Datascope’s facilities in New
Jersey, USA. On September 4, 2008, senior management of
Getinge conducted a site visit at Datascope’s facility in
La Ciotat, France.
On September 8, 2008, Getinge’s board of directors
authorized senior management to submit a binding proposal to
acquire Datascope.
On September 9, 2008, following completion of both
documentary and management due diligence, Getinge submitted a
formal proposal to acquire Datascope, as well as comments on the
proposed merger agreement. Getinge’s proposal contemplated
acquiring control of Datascope by means of a public tender offer
at a price of $51.00 per share followed by a merger with
Datascope. Getinge also submitted a commitment letter evidencing
its ability to finance its obligations pursuant to the merger
agreement and the transactions contemplated thereby.
On September 10, 2008, Getinge was advised to reevaluate
and resubmit its proposal by noon on September 13, 2008.
During this period, at Getinge’s instruction,
Getinge’s advisors and counsel negotiated revisions to the
merger agreement and the financing documents with the advisors
and counsel of Datascope.
On September 13, 2008, Getinge submitted a revised bid
proposal, including a revised merger agreement and financing
commitment letter. Getinge increased its offer to $53.00 per
share. Later that evening, the Datascope board of directors,
after a full discussion, authorized Dechert and Xxxxxx to seek
to finalize the negotiations with Getinge (assuming certain
additional business points could be agreed upon), based on a
number of factors, including Getinge’s superior price of
$53.00 per share and the strength of Getinge’s financing,
with the goal of signing definitive transaction agreements on
September 14, 2008. By late afternoon on September 14,
2008, Datascope and Getinge had reached agreement on all
substantive issues.
On September 15, 2008, Getinge and Datascope continued to
negotiate and finalize the merger agreement and the ancillary
transaction agreements. At a special meeting of the Datascope
board of directors held, the Datascope board of directors
determined to accept Getinge’s offer. Thereafter,
Datascope, Getinge and the various parties to the ancillary
agreements executed the transaction agreements. Getinge also
executed a loan agreement with SEB relating to financing for the
transaction.
On September 15, 2008, Getinge each issued a press release
announcing the execution of the Merger Agreement and related
transactions.
11. | PURPOSE OF THE OFFER; THE MERGER AGREEMENT; STATUTORY REQUIREMENTS; DISSENTERS’ RIGHTS; “GOING PRIVATE” TRANSACTIONS; PLANS FOR DATASCOPE |
(a) Purpose. The purpose of the Offer and
the Merger is for Getinge to acquire control of, and the entire
equity interest in, Datascope. The Offer, as the first step in
the acquisition of Datascope, is intended to
13
Table of Contents
facilitate the acquisition of all of the Shares. The purpose of
the Merger is for Getinge to acquire all capital stock of
Datascope not purchased pursuant to the Offer or otherwise.
(b) The Merger Agreement. The following
summary description of the Merger Agreement is qualified in its
entirety by reference to the entire Merger Agreement, which
Purchaser has filed as an exhibit to the Tender Offer Statement
on Schedule TO that Purchaser has filed with the SEC, which
you may examine and copy as set forth in
Section 9 — “Information Concerning Getinge
and Purchaser.”
The Offer. The Merger Agreement provides that
Purchaser will commence the Offer promptly after
September 15, 2008, and in any event on or prior to
September 30, 2008 and that, upon the terms and subject to
the conditions of the Offer, including the prior satisfaction or
waiver of the conditions to the Offer as set forth in
Section 14 — “Conditions of the Offer,”
Purchaser will purchase all Shares validly tendered and not
properly withdrawn pursuant to the Offer. The Merger Agreement
provides that, without the prior written consent of Datascope,
Purchaser will not (i) decrease the Offer Price,
(ii) change the form of consideration payable in the Offer,
(iii) reduce the maximum number of Shares to be purchased
in the Offer, (iv) impose conditions to the Offer that are
different from, or in addition to, the conditions set forth in
the Merger Agreement, (v) waive the Minimum Condition as
defined in the Merger Agreement, (vi) amend any of the
conditions to the Offer set forth in the Merger Agreement in a
manner adverse to the holders of the Shares or (vii) extend
the expiration of the Offer in a manner other than as required
by the Merger Agreement.
Purchaser (a) shall, until at least June 15, 2009,
extend the Offer for one or more periods of five (5)
business days if, at the then-scheduled Expiration Date, any of
the conditions of the Offer have not been satisfied or waived,
or (b) may, without the consent of Datascope, if all of the
conditions of the Offer are satisfied but the number of Shares
that have been validly tendered and not properly withdrawn in
the Offer, together with any Shares then owned by Getinge, is
less than ninety percent (90%) of the outstanding Shares,
commence a subsequent offering period for three to twenty
business days to acquire the remaining outstanding Shares.
Purchaser shall extend the Offer for any period required by
applicable law, rule, regulation, interpretation or position of
the SEC (or its staff) or NASDAQ.
Recommendation. Datascope has represented to
Getinge in the Merger Agreement that the Datascope board of
directors has unanimously, by resolutions duly adopted at a
meeting duly called and held (i) approved and adopted the
Merger Agreement and declared the Merger Agreement, the Offer,
the Merger and the transactions contemplated by the Merger
Agreement advisable and in the best interests of the Datascope
stockholders; (ii) determined to take all action necessary
to render the restrictions on business combinations and voting
requirements contained in Section 203 of the DGCL, if
applicable, inapplicable to each of the Offer and the Merger;
and (iii) recommended that the Datascope stockholders
accept the Offer, tender their Shares in the Offer to Purchaser
and adopt the Merger Agreement and the Merger to the extent
required by applicable law. Datascope further represented that
Xxxxxx has delivered to Datascope a written opinion to the
effect that, as of September 15, 2008 (the date of the
Merger Agreement), and based on and subject to the matters
stated in its opinion, from a financial point of view, the
consideration to be offered to and received by Datascope’s
stockholders in the Offer and Merger was fair to such
stockholders.
Directors. The Merger Agreement provides that,
promptly upon the acceptance for payment and payment of any
Shares by Purchaser (the “Appointment Time”), and at
all times thereafter, Purchaser is entitled to elect or
designate up to such number of directors, rounded up to the next
whole number as will give Purchaser representation on the
Datascope board of directors equal to the product of the total
number of directors on the Datascope board of directors (giving
effect to the directors elected or designated by Purchaser)
multiplied by the percentage that the aggregate number of Shares
beneficially owned by Getinge, Purchaser and any of their
respective affiliates bears to the total number of Shares then
outstanding, with such directors to be split up among the three
classes of the Datascope board of directors so as to keep the
classes approximately even in number of directors. Datascope
shall, upon Purchaser’s request, at any time following the
purchase of and payment for Shares pursuant to the Offer, take
such actions, including but not limited to promptly filling
vacancies or newly created directorships on the Datascope board
of directors, promptly increasing the size of the Datascope
board of directors (including by amending the bylaws of
Datascope if necessary so as to increase the size of the
Datascope board of directors)
and/or
promptly securing the
14
Table of Contents
resignations of such number of its incumbent directors as are
necessary or desirable to enable Purchaser’s designees to
be so elected or designated to the Datascope board of directors,
and shall use its reasonable best efforts to cause
Purchaser’s designees to be so elected or designated at
such time. Datascope shall, upon Purchaser’s request
following the Appointment Time, also cause persons elected or
designated by Purchaser to constitute the same percentage
(rounded up to the next whole number) as is on the Datascope
board of directors of (i) each committee of the Datascope
board of directors, (ii) each board of directors (or
similar body) of each of Datascope’s subsidiaries and
(iii) each committee (or similar body) of each such board,
in each case to the extent permitted by applicable law and the
NASDAQ Marketplace Rules.
In the event that Purchaser’s designees are elected or
designated to the Datascope board of directors, then, until the
time the Merger becomes effective (the “Effective
Time”), Datascope shall seek to cause the Datascope board
of directors to have at least three (3) members who were
directors on the date of the Merger Agreement and who are
independent directors and eligible to serve on Datascope’s
audit committee for purposes of the continued listing
requirements of NASDAQ and the SEC rules and regulations (the
“Independent Directors”). If any Independent Director
is unable to serve due to death, disability or resignation,
Datascope shall take all necessary action (including creating a
committee of the Datascope board of directors) so that the
Independent Directors shall be entitled to elect or designate
another person (or persons) to fill such vacancy, and such
person (or persons) shall be deemed to be an Independent
Director for purposes of the Merger Agreement. If no Independent
Director then remains, the other directors shall designate three
(3) persons to fill such vacancies and such persons shall
be deemed Independent Directors for all purposes of the Merger
Agreement. Notwithstanding anything in the Merger Agreement to
the contrary, if Purchaser’s designees constitute a
majority of the Datascope board of directors after the
Appointment Time and prior to the Effective Time, then the
affirmative vote of a majority of the Independent Directors
shall be required (i) for Datascope to amend or terminate
the Merger Agreement; (ii) to exercise or waive any of
Datascope’s rights, benefits or remedies under the Merger
Agreement; (iii) to amend the Datascope’s certificate
of incorporation or bylaws; or (iv) to take any other
action of the Datascope board of directors under or in
connection with the Merger Agreement if such action would
materially and adversely affect the holders of Shares (other
than Getinge or Purchaser).
The Merger. The Merger Agreement provides
that, at the Effective Time, Purchaser will be merged with and
into Datascope, with Datascope surviving as an indirect wholly
owned subsidiary of Getinge. Following the Merger, the separate
corporate existence of Purchaser will cease, Datascope shall be
the Surviving Corporation in the Merger and shall continue to be
governed by the DGCL, and the separate corporate existence of
Datascope with all its rights, privileges, immunities, powers
and franchises shall continue unaffected by the Merger.
Datascope has agreed that, if required by the DGCL in order to
consummate the Merger, it will, in accordance with applicable
law, (i) prepare and file with the SEC for a special
meeting of Datascope’s stockholders relating to the Merger
and the Merger Agreement, a proxy or information statement,
including the recommendation of Datascope’s board of
directors that the Datascope stockholders accept the Offer,
tender their Shares in the Offer to Purchaser and adopt the
Merger Agreement and the Merger to the extent required by
applicable law; (ii) use its reasonable best efforts to
cause such proxy or information statement to include the
information required by the SEC, to respond promptly to any
comments made by the SEC with respect to such proxy or
information statement, and to cause such proxy or information
statement be cleared by the SEC and mailed to the stockholders
of Datascope as promptly as practicable following the execution
of the Merger Agreement; (iii) promptly provide Getinge and
Purchaser any comments or responses that Datascope receives from
or makes to the SEC with respect to such proxy or information
statement. Getinge, Purchaser and their counsel shall be given a
reasonable opportunity to review any such written responses;
(iv) provide Getinge and Purchaser reasonable opportunity
to review any responses regarding such proxy or information
statement to the SEC and give due consideration to all
reasonable changes suggested thereto; (v) with Getinge,
promptly correct any information provided by it for use in such
proxy or information statement that has become false or
misleading in any material respect or as otherwise required by
applicable law; (vi) cause such proxy or information
statement to be filed with the SEC; and (vii) if any
correction is made following the mailing of
15
Table of Contents
such proxy or information statement, cause such proxy or
information statement as corrected to be mailed to holders of
Shares, in each case as and to the extent required by the
Exchange Act or the SEC.
The Merger Agreement also provides that Datascope, acting
through its board of directors, will (i) (A) duly and
promptly set a record date in consultation with Purchaser (such
record date to be after the time that Purchaser becomes the
record holder of the Shares purchased pursuant to the Offer)
for, call and give notice of a special meeting of the Datascope
stockholders for the purpose of obtaining adoption of the Merger
Agreement by a majority of the then outstanding Shares at such
special meeting to the extent required by applicable law, and
(B) promptly convene and hold such special meeting of the
Datascope stockholders; (ii) cause the definitive proxy or
information statement referenced above to be mailed to the
Datascope stockholders; and (iii) use its reasonable best
efforts to (A) solicit from the Datascope stockholders
proxies in favor of the adoption of the Merger Agreement and
approval of the Merger and (B) secure any approval of the
Datascope stockholders that is required by the DGCL and any
other applicable law to effect the Merger. At the special
meeting of the Datascope stockholders for the purpose of
obtaining adoption of the Merger Agreement (or any postponement
or adjournment thereof), Getinge shall vote, or cause to be
voted, all of the Shares then owned by it, by Purchaser or by
any of their respective subsidiaries and affiliates in favor of
the adoption of the Merger Agreement and approval of the Merger
and to deliver or provide, in its capacity as a Datascope
stockholder, any other approvals that are required by the DGCL
and any other applicable law to effect the Merger. Datascope
shall adjourn or postpone the special meeting of the Datascope
stockholders for the purpose of obtaining adoption of the Merger
Agreement to the extent necessary to ensure that any necessary
supplement or amendment to the proxy or information statement is
provided to the Datascope stockholders in advance of a vote on
the adoption of the Merger Agreement and, if as of the time for
which such special meeting is originally scheduled (as set forth
in the proxy or information statement) there are insufficient
Datascope stockholders represented (either in person or by
proxy) to constitute a quorum necessary to conduct the business
of such special meeting or to obtain the adoption of the Merger
Agreement by a majority of the then outstanding Shares, or there
are insufficient votes to obtain the adoption of the Merger
Agreement by a majority of the then outstanding Shares,
Datascope, with the consent of Getinge, may and, at the
direction of Getinge, shall, adjourn or postpone the such
special meeting for no more than thirty (30) days in the
aggregate.
Short Form Merger and Short-Form Merger
Option. The Merger Agreement further provides
that, notwithstanding the foregoing, in the event that Getinge,
Purchaser and their respective subsidiaries and affiliates shall
hold, in the aggregate, at least ninety percent (90%) of the
outstanding shares of each class of capital stock of Datascope
entitled to vote on the adoption of the Merger Agreement under
the DGCL, following the Appointment Time, Getinge shall cause
the Merger to become effective as promptly as practicable,
without a meeting of the Datascope stockholders, in accordance
with Section 253 of the DGCL. The Merger Agreement grants
Getinge and Purchaser an option to purchase up to that number of
newly issued Shares equal to the number of Shares that, when
added to the number of Shares owned by Getinge and Purchaser
immediately following consummation of the Offer, shall
constitute one Share more than the number of Shares necessary
for Purchaser to be merged with and into Datascope pursuant to
Section 253 of the DGCL. However, this option is
exercisable only after Purchaser has acquired at least eighty
percent (80%) of the outstanding Shares, and exercise of this
option by Purchaser would only require Datascope to issue up to
that number of Shares that would not require stockholder
approval under the NASDAQ Marketplace Rules and that would not
exceed the number of authorized Shares.
Charter, By-Laws, Directors and Officers. The
Datascope Amended and Restated Articles of Incorporation will be
amended at the Effective Time of the merger to conform to the
Articles of Incorporation of Purchaser, with such changes or
modifications as Datascope and Getinge may agree, and
Purchaser’s bylaws in effect immediately prior to the
Effective Time will be the Surviving Corporation’s bylaws,
in each case, until amended in accordance with the DGCL or as
provided in the certificate of incorporation or bylaws,
respectively. From and after the Effective Time, the officers of
Datascope will be the initial officers of the Surviving
Corporation and the directors of Purchaser will be the directors
of the Surviving Corporation, in each case, until the earlier of
their resignation or removal or until their respective
successors are duly elected and qualified.
16
Table of Contents
Treatment of Shares in the Merger. At the
Effective Time, by virtue of the Merger and without any action
on the part of the Datascope stockholders, each Share issued and
outstanding immediately prior to the Effective Time (other than
(a) any Shares owned by Datascope, Getinge or Purchaser or
their respective subsidiaries or affiliates, all of which shall
be canceled and shall cease to exist, and (b) Shares held
by a holder who is entitled to demand and has properly demanded
appraisal of such Shares in accordance with, and complies in all
respects with, Section 262 of the DGCL (“Dissenting
Shares”)) will be canceled and cease to exist and will be
converted into the right to receive an amount of cash, without
interest, equal to the Offer Price (the “Merger
Consideration”). If a Datascope stockholder fails to
perfect or otherwise waives, withdraws or loses the right to
appraisal of the Dissenting Shares, then the Dissenting Shares
will be converted into the right to receive an amount of cash,
without interest, equal to the Merger Consideration. See
“— Dissenters’ Rights.” Pursuant to the
Merger Agreement, each issued and outstanding share of common
stock of Purchaser will automatically be converted into one
share of common stock of the Surviving Corporation. Any Shares
owned by Datascope, Getinge or Purchaser or their respective
subsidiaries or affiliates will be canceled and will cease to
exist, and no consideration will be delivered in exchange.
Treatment of Datascope Stock Options, Restricted Stock
Awards, and Director Deferred Shares in the
Merger. The Merger Agreement provides that, as of
the Effective Time, each option to acquire Shares (each, a
“Datascope Stock Option”) that is outstanding
immediately prior to the Effective Time, whether or not then
vested or exercisable, will become fully vested and will be
canceled and converted into the right to receive an amount of
cash, without interest, equal to the product of (a) the
excess, if any, of the Merger Consideration over the exercise
price per share for such Datascope Stock Option, multiplied by
(b) the number of Shares for which the Datascope Stock
Option has not been previously exercised, less the amount of any
withholding required under applicable tax law.
Pursuant to the Merger Agreement, the compensation committee of
Datascope’s board of directors will cause each restricted
share subject to a restricted stock award outstanding
immediately prior to the Effective Time to become fully vested
and transferable immediately prior to the Effective Time.
Each outstanding deferred share unit (a “Director Deferred
Share”) that, immediately prior to the Effective Time, is
outstanding and held by current or former Datascope directors
under Datascope’s Amended and Restated Compensation Plan
for Non-Employee Directors or 2005 Equity Incentive Plan, will
be converted into the right to receive an amount in cash equal
to the Merger Consideration (with such amount to be rounded to
the nearest cent), distributable in accordance with such
director’s prior distribution election and the terms and
conditions of the applicable plan and agreement pursuant to
which such Director Deferred Share was issued.
Representations and Warranties. In the Merger
Agreement, Datascope has made customary representations and
warranties to Getinge and Purchaser with respect to, among other
matters, its and its subsidiaries’ organization and
qualification, capitalization, its subsidiaries, corporate power
and authority, conflicts, consents and approvals,
inapplicability of the Rights Agreement or anti-takeover laws
and regulations, SEC filings, financial statements, internal
controls and procedures, undisclosed liabilities, compliance
with laws and permits, environmental laws and regulations,
employee benefit plans, interested party transactions, absence
of certain changes or Material Adverse Effect (as defined
below), investigations and litigation, information in the Tender
Offer Statement on Schedule TO and the
Schedule 14D-9,
taxes, labor matters, intellectual property, property, opinion
of financial advisor, insurance, material contracts,
finders’ and brokers’ fees, and business practices.
Getinge and Purchaser have made customary representations and
warranties to Datascope with respect to, among other matters,
their organization and qualification, corporate power and
authority, conflicts, consents and approvals, sufficient funds,
capitalization of Purchaser stock, finders’ and
brokers’ fees, ownership of Datascope Shares, information
in the Tender Offer Statement on Schedule TO and the
Schedule 14D-9,
investigations and litigation, solvency of the Surviving
Corporation, and required votes and approvals.
The representations and warranties contained in the Merger
Agreement were made solely for purposes of the Merger Agreement
and are qualified by information in confidential disclosure
schedules provided by Datascope to Getinge and Purchaser in
connection with the signing of the Merger Agreement. These
disclosure
17
Table of Contents
schedules contain information that modifies, qualifies and
creates exceptions to the representations and warranties set
forth in the Merger Agreement. Moreover, certain representations
and warranties in the Merger Agreement were used for the purpose
of allocating risk between Getinge and Purchaser, on the one
hand, and Datascope, on the other hand, rather than establishing
matters as facts. Accordingly, you should not rely on the
representations and warranties in the Merger Agreement as
characterizations of the actual state of facts about Getinge,
Purchaser or Datascope.
Conduct of Datasope’s Business. During
the period from the date of the Merger Agreement to the earlier
of the Appointment Time and the termination of the Merger
Agreement, except as required by applicable law, consented to by
Getinge, expressly contemplated or permitted by the Merger
Agreement, or disclosed by Datascope in the disclosure letter
related to the Merger Agreement, Datascope has agreed in the
Merger Agreement that it will, and will cause each of its
subsidiaries to, (A) conduct its business in all material
respects in the ordinary course consistent with past practice
and in material compliance with all applicable laws and
regulations; (B) use commercially reasonable efforts to
maintain and preserve intact its business organization and
advantageous business relationships and to retain the services
of its key officers and key employees; and (C) take no
action that is intended to or that would reasonably be expected
to materially adversely affect or materially delay the ability
of any of the parties hereto from obtaining any necessary
approvals of any regulatory agency or other governmental entity
required for the transactions contemplated by the Merger
Agreement, performing its covenants and agreements under the
Merger Agreement or consummating the transactions contemplated
thereby or otherwise materially delay or prohibit consummation
of the Merger or other transactions contemplated by the Merger
Agreement.
The Merger Agreement also contains specific restrictive
covenants as to certain impermissible activities of Datascope
and its subsidiaries during the period from the date of the
Merger Agreement to the earlier of the Appointment Time and the
termination of the Merger Agreement. Such specific restrictive
covenants provide that, subject to certain exceptions, Datascope
will not (and will not permit any of its subsidiaries to) take
certain actions without the prior written consent of Getinge,
including, among other things, actions related to the terms of
its capital stock; dividends and distributions; stock option
awards; unbudgeted capital expenditures; material contracts;
compensation or benefits of directors, officers, consultants or
employees; pension, severance, termination or retirement
benefits; material employee benefit plans; material claims,
actions or proceedings; certificate of incorporation or its
bylaws or other equivalent organizational documents; conditions
to the Merger set forth in the Merger Agreement; tax or
financial accounting principles, practices or methods;
agreements with respect to material tax liabilities; acquisition
by any manner, any material business, asset or entity; or
resolutions of the Datascope board of directors in support of
actions that Datascope is prohibited from undertaking in the
Merger Agreement.
Access to Information. The Merger Agreement
provides that Datascope will give Getinge and its
representatives reasonable access, during normal business hours
during the period from the date of the Merger Agreement to the
Effective Time or the termination of the Merger Agreement, to
all Datascope’s and its subsidiaries’ offices,
properties, books and records. Datascope will also furnish
financial and operating data and other information and cause its
representatives to cooperate reasonably during normal business
hours with Getinge as Getinge or its representatives may from
time to time reasonably request. The Merger Agreement also
provides that each of Getinge will treat, and will cause its
representatives to treat, all information received from
Datascope in accordance with the terms and conditions of a
confidentiality agreement between Datascope and Getinge.
No Solicitation. Datascope has agreed in the
Merger Agreement that, from the date of the Merger until the
earlier of the Appointment Time and the termination of the
Merger Agreement, it will not, and will not authorize or permit
any of its subsidiaries or any of their respective directors,
officers or employees or any advisor, agent or representative,
directly or indirectly:
• | solicit, initiate or knowingly encourage or facilitate any inquiries regarding or submissions of any inquiry, offer, proposal or indication of interest that would be reasonably expected to lead to an Acquisition Proposal (as defined below); |
18
Table of Contents
• | participate or engage in any discussions or negotiations with, or disclose or provide any non-public information with respect to, any person (other than Getinge and its subsidiaries and representatives) relating to an Acquisition Proposal; | |
• | accept, approve, endorse or recommend an Acquisition Proposal; or | |
• | enter into any agreement, arrangement, undertaking, contract, commitment or understanding with respect to or contemplating an Acquisition Proposal or requiring Datascope to abandon, terminate or fail to consummate the transactions contemplated by the Merger Agreement. |
The Merger Agreement further provides that Datascope, its
subsidiaries and their respective representatives will cease and
terminate any existing solicitation, encouragement, activity,
discussion or negotiation with any third party conducted by
Datascope, its subsidiaries or their respective representatives
prior to the Merger Agreement with respect to an Acquisition
Proposal or the transaction contemplated by the Acquisition
Proposal and request the prompt return or destruction of all
confidential information previously furnished.
The term “Acquisition Proposal” means any inquiry,
offer, proposal or indication of interest by any person that
relates to an any transaction, other than the transactions
contemplated by the Merger Agreement, to acquire beneficial
ownership (as defined under Rule 13(d) of the Exchange Act)
of (i) assets that constitute twenty percent (20%) or more
of the consolidated assets of Datascope and its subsidiaries,
taken as a whole, or (ii) twenty percent (20%) or more (in
number or voting power) of any class of equity securities or
other capital stock of Datascope or any of its subsidiaries (if
the securities or ownership interests acquired in such
subsidiaries represent an amount equal to or greater than twenty
percent (20%) or more of the consolidated assets of Datascope
and its subsidiaries, taken as a whole), in any such case
pursuant to any transaction or series of transactions, including
without limitation (w) a merger, consolidation, share
exchange, or other business combination (including without
limitation any so-called merger-of-equals and whether or not
Datascope is the entity surviving any such transaction)
involving Datascope or any of its subsidiaries, (x) sale,
issuance, exchange, transfer or other disposition of shares of
capital stock of Datascope or any of its subsidiaries,
(y) sale, lease, license, exchange, transfer or other
disposition of assets of Datascope or any of its subsidiaries or
(z) tender offer, exchange offer or similar transaction
with respect to either Datascope or any of its subsidiaries,
including any single or multi-step transaction or series of
related transactions, which is structured to permit such third
party or another third party to acquire beneficial ownership of
assets that constitute twenty percent (20%) or more of the
assets of Datascope and its subsidiaries, taken as a whole, or
twenty percent (20%) or more of the equity interest in either
Datascope and its subsidiaries (if the securities or ownership
interests acquired in such subsidiaries represent an amount
equal to or greater than twenty percent (20%) or more of the
consolidated assets of Datascope and its subsidiaries, taken as
a whole).
Notwithstanding the foregoing, at any time prior to the
Appointment Time, the Datascope board of directors may qualify,
modify, change or amend the recommendation of the Datascope
board of directors in a manner adverse to Getinge or Purchaser
(including pursuant to the
Schedule 14D-9
filed with the SEC or any amendment thereto) if:
• | the Datascope board of directors determines in good faith (after consultation with its outside counsel and a financial advisor of nationally recognized reputation) that the failure to so qualify, modify, change or amend the recommendation of the Datascope board of directors in a manner adverse to Getinge or Purchaser would be inconsistent with its fiduciary obligations to Datascope’s stockholders under applicable law; or | |
• | the Datascope board of directors receives an unsolicited Acquisition Proposal after the date of the Merger Agreement (that has not been withdrawn) that constitutes a Superior Proposal (as defined below) and the Datascope board of directors determines in good faith, after consultation with its outside counsel and a financial advisor of nationally recognized reputation and after considering in good faith any counter-offer or proposal made by Getinge in accordance with the Merger Agreement, that the failure to qualify, modify, change or amend the recommendation of the Datascope board of directors in light of such Superior Proposal in a manner adverse to Getinge or Purchaser would be inconsistent with its fiduciary obligations to Datascope’s stockholders under applicable law. |
19
Table of Contents
Further, the Datascope board of directors will only be entitled
to qualify, modify, change or amend the recommendation of the
Datascope board of directors in a manner adverse to Getinge or
Purchaser as described above if:
• | the Datascope board of directors provides to Getinge a written notice of its intention to so qualify, modify, change or amend its recommendation, which shall provide the reasons therefor, including the material terms and conditions of any Superior Proposal, at least four (4) business days prior to such qualification, modification, change or amendment to the recommendation of the Datascope board of directors; | |
• | Datascope gives Getinge the opportunity to meet with Datascope and its representatives during the four (4) business-day period after Getinge receives such notice and negotiates in good faith regarding the terms of possible revisions to the terms of the Merger Agreement in such a manner that the Acquisition Proposal which was determined to be a Superior Proposal no longer is a Superior Proposal; and | |
• | Getinge does not, during the four business-day period after Getinge receives such notice, make an offer that the Datascope board of directors determines would cause the Superior Proposal to no longer be a Superior Proposal or that would cause the Datascope board of directors not to qualify, modify, change or amend the recommendation of the Datascope board of directors in a manner adverse to Getinge or Purchaser. |
The term “Superior Proposal” means any unsolicited
Acquisition Proposal which, if consummated, would result in the
person making such Acquisition Proposal owning, directly or
indirectly, greater than fifty percent (50%) of the Shares then
outstanding (or of the shares of the surviving entity in a
merger or the direct or indirect parent of the surviving entity
in the merger) or greater than fifty percent (50%) of the assets
of Datascope, which the Datascope board of directors determines
in good faith, after consultation with its financial advisor and
outside legal counsel) (such consultation with a financial
advisor and outside legal counsel, taking into account, among
other things, all legal, financial, regulatory, timing and other
aspects of the acquisition proposal and the third party making
the acquisition proposal and any adjustment to the terms and
conditions of the Merger Agreement proposed by Getinge in
response to such acquisition proposal, would, if consummated in
accordance with its terms, be more favorable from a financial
point of view to the holders of Shares (in their capacity as
such) than the transactions contemplated by the Merger
Agreement, including the Offer and the Merger (after taking into
account any adjustment to the terms and conditions of the Merger
Agreement proposed by Getinge in response to such acquisition
proposal).
Employee Benefit Matters. The Merger Agreement
provides that Getinge will honor Datascope’s employee
benefits plans and compensation arrangements and agreements in
accordance with their terms as in effect immediately prior to
the Effective Time, provided that Getinge will have the right to
amend or terminate such plans in accordance with their terms and
applicable law. Under the terms of the Merger Agreement, for a
period of one (1) year following the Effective Time, the
employees of Datascope and its subsidiaries will receive
compensation and benefits no less favorable, in the aggregate,
than those provided to the employees of Datascope or its
subsidiaries immediately prior to the Effective Time. In
addition, employees of Datascope and its subsidiaries whose
employment terminates within one (1) year following the
Effective Time will receive severance benefits at least equal to
the severance levels and terms provided by Datascope’s
severance plans and policies as in effect immediately prior to
the Effective Time, and such severance benefits will be
determined without accounting for any reduction in compensation
after the Effective Time of the employees of Datascope or its
subsidiaries. With respect to any former employees of Datascope
or its subsidiaries who, as of the Effective Time, receive or
are entitled to receive severance or welfare benefits, Getinge
will provide such benefits at the levels and pursuant to the
terms of Datascope’s applicable severance or benefit plans
and policies as in effect at the time of any such former
employee’s termination date.
Pursuant to the Merger Agreement, the employee benefit plans of
Getinge and its subsidiaries that cover any employees of
Datascope and its subsidiaries after the Effective Time (the
“New Plans”) will credit each such employee with his
or her years of service with Datascope and its subsidiaries and
their respective predecessors prior to the Effective Time, to
the extent that such employee was entitled to credit under any
similar Datascope employee benefit plan in which such employee
participated or was eligible to participate
20
Table of Contents
immediately prior to the Effective Time. Notwithstanding the
foregoing, an employee of Datascope or its subsidiaries will not
receive credit for benefit accrual under any defined benefit
pension plan (other than with respect to a defined benefit plan
in which such employee participated prior to the Effective Time)
or to the extent it would result in duplication of benefits for
the same period of service. The Merger Agreement also provides
that each employee of Datascope or its subsidiaries will
immediately be eligible to participate in all New Plans to the
extent coverage is comparable to the Datascope plans in which
such employee participated immediately prior to the Effective
Time, and, with respect to each New Plan providing medical,
dental, pharmaceutical or vision benefits, all pre-existing
condition exclusions and actively-at-work requirements of such
New Plans will be waived for such employee and his or her
covered dependents if such conditions would have been waived
under the Datascope plans. Such employees will also receive
credit under the New Plans, for purposes of satisfying
deductible, coinsurance and maximum out-of-pocket requirements,
for any eligible expenses incurred by any such employee during
the plan year prior to the date the New Plans take effect for
such employee.
Efforts to Close the Transactions. In the
Merger Agreement, each of Getinge, Purchaser and Datascope
agrees to use its reasonable best efforts to take promptly all
actions, and to do promptly and to assist and cooperate with the
other parties in doing all things necessary, proper or advisable
under applicable laws to consummate the Offer and the other
transactions contemplated by the Merger Agreement, including
obtaining all necessary waivers, consents, approvals and
expirations or terminations of waiting periods and the making of
all necessary registrations and filings necessary to obtain such
approvals, and defending any lawsuits or other legal proceedings
challenging the Merger Agreement or consummation of the Merger
and other transactions contemplated by the Merger Agreement.
However, Datascope is not required to pay any fees or other
consideration to any third party to obtain consent or approval
to consummate the Merger under any Datascope contract, unless
Getinge agrees to reimburse Datascope for such fees or
consideration in the event of a termination of the Merger
Agreement.
Pursuant to the Merger Agreement, Datascope and Getinge will
promptly, but within ten (10) days of the date of the Merger
Agreement file notification and report forms required under the
HSR Act with respect to the transactions contemplated by the
Merger Agreement and to use reasonable best efforts to cause the
expiration or termination of the applicable waiting periods.
Datascope and Getinge also agreed to (a) use reasonable
best efforts to cooperate in determining whether any filings are
required with, or consents, permits, approvals, and expirations
or terminations of waiting periods obtained from, any third
parties or governmental entities, and timely making all such
filings and obtaining all such consents or approvals,
(b) promptly supply any governmental entities with
additional requested information or documents, (c) use
reasonable best efforts to take all actions and do all things
necessary to consummate the Merger and the transactions
contemplated by the Merger Agreement within two hundred seventy
(270) days of the date of the Merger Agreement. The Merger
Agreement provides that such reasonable best efforts will
include the divestiture of any business or assets of Datascope,
Getinge or both as the U.S. Federal Trade Commission,
Antitrust Division of the U.S. Department of Justice, state
or foreign antitrust or competition authorities, or any other
person may assert under regulatory laws with respect to the
Merger and the transactions contemplated by the Merger
Agreement. However, Getinge and its subsidiaries and affiliates
are not required, under the Merger Agreement, in connection with
any filing or submission to consummate the Offer and the Merger,
to propose or agree to accept any undertaking or condition to
enter into any consent decree, make any divestiture or accept
any operational restriction, or to take or commit to take any
action (a) the effectiveness of which is not conditional on
the consummation of the Merger or (b) that, individually or
in the aggregate, is or would reasonably be expected to be
materially adverse, either before or after giving effect to the
Offer or the Merger, to the business of Datascope and its
subsidiaries taken as a whole (with materiality being measured
in relation to the size of Datascope and its subsidiaries taken
as a whole) or Getinge and its subsidiaries taken as a whole
(with materiality being measured in relation to the size of
Datascope and its subsidiaries taken as a whole, and any action,
individually or in the aggregate, involving gross revenue of
$37,500 or less per year deemed not, in and of itself,
materially adverse) (a “Materially Burdensome
Condition”), provided that, an undertaking, condition,
consent decree, divestiture, restriction or other action related
to Datascope’s endoscopic vessel harvesting business is not
deemed, in and of itself, a Materially Burdensome Condition.
Under the terms of the Merger Agreement, Getinge and Purchaser
will bear any expenses incurred by the parties in connection
with any such filings or actions.
21
Table of Contents
Datascope Rights Agreement. Datascope has
taken all action, if any, necessary or appropriate so that the
execution of the Merger Agreement, the voting agreement
contemplated thereby, the Merger and the consummation of the
transactions contemplated by the Merger Agreement and such other
agreements do not and will not result in the distribution of the
Rights under the Rights Agreement or the ability of any person
to exercise any Rights under the Rights Agreement.
Indemnification; Directors’ and Officers’
Insurance. Pursuant to the Merger Agreement, all
rights to exculpation, indemnification and advancement of
expenses for acts or omissions occurring at or prior to the
Effective Time in favor of Datascope’s or its
subsidiaries’ current and former directors, officers or
employees, whether asserted or claimed prior to, at or after the
Effective Time, which rights are provided in Datascope’s or
its subsidiaries’ respective certificates of incorporation,
bylaws, other organizational documents or indemnification
arrangements (in each case, as in effect on the date of the
Merger Agreement), will survive the Merger and will continue in
full force and effect, and the Surviving Corporation will
maintain such provisions in effect and will not amend, repeal,
or modify such provisions in a manner that would adversely
affect the rights of the individuals. Under the Merger
Agreement, the Surviving Corporation, from and after the
Effective Time, will indemnify and hold harmless, and advance
expenses to, Datascope’s and its subsidiaries’ current
and former directors, officers or employees against costs and
expenses, liabilities, and amounts paid in settlement, in
connection with actual or threatened claims or actions arising
out of or related to any action or omission before or after the
Effective Time. Getinge will also cause the Surviving
Corporation, for six (6) years after the Effective Time, to
maintain the directors’ and officers’ liability
policies of Datascope in effect on the date of the Merger
Agreement, to the extent related to acts or omissions prior to
the Effective Time, or to provide substitute policies with at
least equal coverage and amounts and terms no less advantageous
to such former directors and officers and without any gaps in
coverage. However, neither Getinge nor the Surviving Corporation
will be obligated to pay more than three hundred percent (300%)
of the annual premiums currently paid by Datascope for such
insurance; provided that, if the amount exceeds three hundred
percent (300%) of the annual premiums, Getinge and the Surviving
Corporation must provide and maintain, during the six-year
period, as much coverage as reasonably practicable for three
hundred percent (300%) of the current annual premiums.
Notification. Pursuant to the Merger
Agreement, the parties agree to give prompt notice to each other
with respect to certain matters, including (a) notice
received from any governmental entity in connection with the
Merger or the transactions contemplated by the Merger Agreement,
(b) actions, claims, investigations, or proceedings
commenced or threatened relating to the Merger and the
transactions contemplated by the Merger Agreement, and
(c) facts or circumstances that would cause any conditions
to the Merger not be satisfied or to be materially delayed in
violation of the Merger Agreement.
Transfer Taxes. The Merger Agreement provides
that Getinge or the Surviving Corporation will bear the
liability, if applicable and due with respect to the Merger, for
any real estate transfer tax with respect to interests in real
property owned directly or indirectly by Datascope or its
subsidiaries immediately prior to the Effective Time.
Takeover Laws. Under the Merger Agreement, if
any business combination, control share, fair price, or other
anti-takeover laws of any governmental entity become applicable
to the Merger, each party will use its reasonable best efforts
to take such actions as are reasonably necessary consummate the
transactions contemplated by the Merger Agreement as promptly as
practicable and to eliminate or minimize the effects on any such
law on the Merger.
Conditions to Consummation of the
Merger. Pursuant to the Merger Agreement, the
obligations of Getinge, Purchaser and Datascope to effect the
Merger will be subject to the satisfaction or waiver of the
following conditions at or prior to the closing date of the
transactions contemplated by the Merger Agreement:
• | adoption of the Merger Agreement, to the extent required by applicable law, by the holders of a majority of the then outstanding Shares at a special meeting of Datascope’s stockholders; | |
• | enactment or promulgation of a statute, rule, regulation, judgment or order by any governmental entity that prohibits the consummation of the Merger, or the effectiveness of any order or injunction of a court of competent jurisdiction preventing the consummation of the Merger; and |
22
Table of Contents
• | Purchaser shall have accepted for payment and paid for, or caused to be accepted for payment and paid for, all Shares validly tendered and not properly withdrawn pursuant to the Offer. |
Termination. The Merger Agreement may be
terminated, and the Offer, the Merger and the other transactions
contemplated by the Merger Agreement abandoned at any time
before the Appointment Time:
• | by Getinge (by action duly authorized by the Getinge board of directors, or an authorized committee thereof) or Datascope (by action of the Datascope board of directors): |
- | unless the other party is at that time in material breach of the Merger Agreement, if there is a breach by the other party of any representation, warranty, covenant or agreement set forth in the Merger Agreement, which breach (1) in the case of Datascope shall result in any conditions of the Offer, as set forth in Section 14 — “Conditions of the Offer,” not being satisfied, and (2) in the case of a breach by Getinge or Purchaser, shall have or be reasonably likely to have, individually or in the aggregate, a material adverse effect upon Getinge or Purchaser’s ability to consummate the Offer or the Merger (and in each case such breach is not reasonably capable of being cured or such condition is not reasonably capable of being satisfied within fifteen (15) business days after the receipt of notice thereof by the defaulting party from the non-defaulting party (unless such breach is cured during such period)); | |
- | if Purchaser does not accept for payment and pay for all Shares tendered pursuant to the Offer in accordance with the terms thereof on or before June 15, 2009, unless the right to terminate the Merger Agreement pursuant to the foregoing shall not be available to any party whose breach of any representation, warranty, covenant or agreement set forth in the Merger Agreement has been the cause of, or resulted in, Purchaser’s failure to accept for payment and pay for all Shares tendered pursuant to the Offer prior to June 15, 2009; | |
- | if the Offer expires or is terminated in accordance with the terms of the Merger Agreement without Getinge or Purchaser accepting for purchase any Shares pursuant to the Offer other than due to a breach of the Merger Agreement by the terminating party; or |
• | by Getinge, if (A) the Datascope board of directors or any committee thereof qualifies, modifies, changes or amends the recommendation of the Datascope board of directors in a manner adverse to Getinge or Purchaser, (B) the Datascope board of directors or any committee thereof approves or recommends any Superior Proposal, (C) Datascope or any Datascope subsidiary enters into any agreement (other than a confidentiality agreement as contemplated by the Merger Agreement), with respect to any Acquisition Proposal, (D) Datascope fails to recommend in the Schedule 14D-9 that the Datascope stockholders accept the Offer, that the Datascope stockholders tender their Shares in the Offer to Purchaser and that the Datascope stockholders adopt the Merger Agreement and the Merger to the extent required by applicable law, or refuses to permit Getinge and Purchaser to include such a recommendation in the documents undertaking the Offer, (E) the Datascope board of directors fails to reconfirm such a recommendation or its approval of the Merger Agreement, the Offer, the Merger or any other transaction contemplated by the Merger Agreement promptly, and in any event within five (5) business days following Getinge’s request to do so or (F) the Datascope board of directors or any committee thereof resolves to take any action described in the preceding clauses (A) through (E); | |
• | by Datascope, immediately prior to entering into a definitive agreement with respect to a Superior Proposal, provided that (A) Datascope receives such Superior Proposal (other than as a result of a breach of or violation of the terms of its obligations regarding solicitation of competing offers under the Merger Agreement), (B) Datascope has not breached or violated the terms of its obligations regarding solicitation of competing offers or board recommendations under the Merger Agreement in connection with such Superior Proposal, (C) subject to the terms of the Merger Agreement, the Datascope board of directors qualifies, modifies, changes or amends the recommendation of the Datascope board of directors in a manner adverse to Getinge or Purchaser in response to such Superior Proposal pursuant to and in compliance with the Merger Agreement and authorizes Datascope to enter into such definitive agreement for such Superior Proposal (which authorization may be subject to |
23
Table of Contents
termination of the Merger Agreement), (D) immediately prior to the termination of the Merger Agreement, Datascope pays to Getinge the termination fee payable pursuant to the Merger Agreement, and (E) immediately following the termination of the Merger Agreement, Datascope enters into such definitive agreement to effect such Superior Proposal; or |
• | by Getinge, if Datascope or any of its representatives, intentionally or willfully breaches Datascope’s obligations regarding solicitation of competing offers under the Merger Agreement. |
The Merger Agreement may be terminated and the transactions
contemplated by the Merger Agreement may be abandoned at any
time before the Effective Time, whether before or after the
Datascope stockholders’ approval thereof:
• | by either Getinge or Datascope, if a court of competent jurisdiction or other governmental entity shall have issued a final, non-appealable order, decree or ruling in each case permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by the Merger Agreement; or | |
• | by mutual written consent of Getinge and Datascope duly authorized by Datascope board of directors and the board of directors of Getinge, or authorized committee thereof. |
Effect of Termination. In the event of the
termination of the Merger Agreement by any party in accordance
with its terms, the Merger Agreement will become null and void
and there shall be no liability on the part of any party to the
Merger Agreement, except that certain provisions will survive
any such termination including, without limitation, certain
provisions relating to the payment of termination fees and
expenses in the circumstances described below. Notwithstanding
the foregoing, the Merger Agreement does not relieve any party
from liability or damages resulting from the breach of the
Merger Agreement.
The Merger Agreement provides for Datascope to pay to Getinge a
termination fee of $30 million if, prior to the termination
of the Merger Agreement, Datascope terminates the Merger
Agreement immediately prior to entering into a definitive
agreement with respect to a Superior Proposal as described
above, or if Getinge terminates the Merger Agreement after
Datascope has (i) intentionally or willfully breached its
non-solicitation covenants under the Merger Agreement as
described above, the Datascope board of directors has qualified,
modified, or (ii)(A) the Datascope board of directors or any
committee thereof qualifies, modifies, changes or amends the
recommendation of the Datascope board of directors in a manner
adverse to Getinge or Purchaser, (B) the Datascope board of
directors or any committee thereof approves or recommends any
Superior Proposal, (C) Datascope or any Datascope
subsidiary enters into any agreement (other than a
confidentiality agreement as contemplated by the Merger
Agreement), with respect to any Acquisition Proposal,
(D) Datascope fails to recommend in the
Schedule 14D-9
that the Datascope stockholders accept the Offer, that the
Datascope stockholders tender their Shares in the Offer to
Purchaser and that the Datascope stockholders adopt the Merger
Agreement and the Merger to the extent required by applicable
law, or refuses to permit Getinge and Purchaser to include such
a recommendation in the documents undertaking the Offer,
(E) the Datascope board of directors fails to reconfirm
such a recommendation or its approval of the Merger Agreement,
the Offer, the Merger or any other transaction contemplated by
the Merger Agreement promptly, and in any event within five
(5) business days following Getinge’s request to do so
or (F) the Datascope board of directors or any committee
thereof resolves to take any action described in the preceding
clauses (A) through (E).
The Merger Agreement provides for Datascope to pay to Getinge a
termination fee of $30 million if, prior to the termination
of the Merger Agreement, on the earlier of the date on which
Datascope enters into a definitive agreement to consummate or
consummates transactions contemplated by any Acquisition
Proposal involving a proposed change in beneficial ownership of
the assets of Datascope and its subsidiaries, taken as a whole,
or any class of equity securities of Datascope or its
subsidiaries of at least 50% if, prior to the termination of the
Merger Agreement, (i) an Acquisition Proposal is made to
Datascope or directly to the Datascope stockholders otherwise
becomes publicly known or is announced, (ii) the Merger
Agreement is thereafter terminated (A) by Getinge following
a breach of the Merger Agreement by Datascope as described
above, or (B) by Getinge or Datascope if Purchaser has not
accepted for payment and paid for all Shares tendered pursuant
to the Offer in accordance with the terms thereof on or before
June 15, 2009, or (C) by
24
Table of Contents
Getinge or Datascope if the Offer shall have expired or been
terminated in accordance with the terms of the Merger Agreement
without Getinge or Purchaser having accepted for purchase any
Shares pursuant to the Offer other than due to a breach of this
Agreement by the terminating party and (iii) concurrently
or within twelve (12) months after such termination,
Datascope enters into a definitive agreement to consummate or
consummates transactions contemplated by any Acquisition
Proposal (regardless of whether made before or after termination
of the Merger Agreement).
The Merger Agreement provides for Getinge to pay to Datascope a
termination fee of $30 million if (i) Datascope
terminates the Merger Agreement because Purchaser has not
accepted for payment and paid for all Shares tendered pursuant
to the Offer in accordance with the terms thereof on or before
June 15, 2009 and (ii) at the time of such termination
all conditions to the consummation of the Offer are satisfied or
waived except that (A) the waiting period under the HSR Act
or any similar foreign competition laws applicable to the
transactions contemplated by the Merger Agreement has not
expired or terminated, and the reason therefor relates solely to
Datascope’s EVH business, (B) there is a suit, action
or proceeding by any governmental entity of competent
jurisdiction pending against Getinge, Purchaser, Datascope or
any subsidiary of Datascope, related solely to Datascope’s
endoscopic vessel harvesting business, that (I) challenges
the acquisition by Purchaser or Getinge of any Shares pursuant
to the Offer or seeks to restrain or prohibit the making or
consummation of the Offer or the Merger, (II) seeks to
impose material limitations on the ability of Purchaser or
Getinge, or to render Purchaser or Getinge unable, to accept for
payment, pay for or purchase any or all of the Shares pursuant
to the Offer or the Merger or (III) that otherwise imposes
a Materially Burdensome Condition, or (C) any statute,
rule, regulation, judgment, order or injunction, related solely
to Datascope’s endoscopic vessel harvesting business, is
enacted, entered, enforced, promulgated or deemed applicable,
pursuant to an authoritative interpretation by or on behalf of a
government entity, to the Offer, the Merger or any other
transaction contemplated by the Merger Agreement, or any other
action is taken by any governmental entity, other than the
application to the Offer or the Merger of applicable waiting
periods under the HSR Act or similar waiting periods with
respect to any similar foreign competition laws or regulation,
that (I) is reasonably likely to result, directly or
indirectly, in any of the consequences referred to in
(A) or (B) above, or (II) has the effect of
making such transactions illegal or the effect of prohibiting or
otherwise preventing the consummation of any of the transactions
contemplated by the Merger Agreement. Datascope is not entitled
to such termination fee if, prior to or at the time of the
termination, Getinge is entitled to terminate the Merger
Agreement for any reason (excluding any cure or notice
provisions) or Datascope is in breach of its obligations set
forth in the Merger Agreement with respect to the HSR Act.
Amendment; Waiver. At any time prior to the
Effective Time, any provision of the Merger Agreement may be
amended or waived if such amendment or waiver is in writing and
signed, in the case of an amendment, by Datascope (approved by
the Datascope board of directors), Getinge and Purchaser, or in
the case of a waiver, by the party against whom the waiver is to
be effective (and, in the case of Datascope, as approved by the
Datascope board of directors). If any such amendment or waiver
shall by applicable law or in accordance with the NASDAQ
Marketplace Rules require further approval of the stockholders
of Datascope after the adoption of the Merger Agreement by the
Datascope stockholders, the effectiveness of such amendment or
waiver shall be subject to the approval of the Datascope
stockholders.
Expenses. Except as noted above under
Section 11 — “Effect of Termination”
and for Getinge’s obligation to pay expenses incurred in
connection with filings under the file any and all Notification
and Report Forms required under the HSR Act, all expenses
incurred in connection with the Merger Agreement, the Offer, the
Merger and the other transactions contemplated by the Merger
Agreement, shall be paid by the party incurring or required to
incur such expenses.
(c) Dissenters’ Rights. Holders of
the Shares do not have dissenters’ rights in connection
with the Offer. However, if the Merger (including a short-form
merger) is consummated, holders of the Shares at the effective
time of the Merger will have certain rights under the provisions
of 262 of the DGCL, including the right to dissent from the
Merger and demand appraisal of, and to receive payment in cash
of the fair value of, their Shares. Dissenting stockholders of
Datascope who comply with the applicable statutory procedures
will be entitled to receive a judicial determination of the fair
value of their Shares (excluding any appreciation or
depreciation in anticipation of the Merger) and to receive
payment of such fair value in cash, together with a
25
Table of Contents
fair rate of interest thereon, if any. Any such judicial
determination of the fair value of the Shares could be based
upon factors other than, or in addition to, the price per Share
to be paid in the Merger or the market value of the Shares. The
value so determined could be more or less than the price per
Share to be paid in the Merger.
The foregoing summary of the rights of dissenting
stockholders under the DGCL does not purport to be a complete
statement of the procedures to be followed by Datascope
stockholders desiring to exercise any available dissenters’
rights.
The preservation and exercise of dissenters’ rights
require strict adherence to the applicable provisions of the
DGCL. Failure to follow the steps required by the DGCL for
perfecting dissenters’ rights may result in the loss of
such rights. Datascope stockholders who tender shares in the
Offer will not have dissenters’ rights.
(d) “Going Private”
Transactions. The SEC has adopted
Rule 13e-3
promulgated under the Exchange Act, which is applicable to
certain “going private” transactions and which may,
under certain circumstances, be applicable to the Merger.
However,
Rule 13e-3
would be inapplicable if (1) the Shares are deregistered
under the Exchange Act prior to the Merger or other business
combination or (2) the Merger or other business combination
is consummated within one year after the purchase of the Shares
pursuant to the Offer and the amount paid per Share in the
Merger or other business combination is at least equal to the
amount paid per Share in the Offer. Getinge and Purchaser
believe that
Rule 13e-3
will not be applicable to the Merger because it is anticipated
that the Merger will be effected within one year following the
consummation of the Offer and, in the Merger, the Datascope
stockholders will receive the same price per Share as paid in
the Offer. If applicable,
Rule 13e-3
requires, among other things, that certain financial information
concerning the fairness of the proposed transaction and the
consideration offered to minority stockholders in the
transaction be filed with the SEC and disclosed to stockholders
prior to the consummation of the transaction.
(e) Plans for Datascope. In connection
with the Offer, Getinge and Purchaser have reviewed and will
continue to review various possible business strategies that
they might consider in the event that Purchaser acquires control
of Datascope, whether pursuant to the Offer, the Merger or
otherwise. These changes could include, among other things,
changes in Datascope’s business corporate structure,
capitalization and management. Upon the consummation of the
Merger, Datascope will become an indirect wholly owned
subsidiary of Getinge.
12. | SOURCE AND AMOUNT OF FUNDS |
Purchaser estimates that the total amount of funds required to
purchase all outstanding Shares pursuant to the Offer and to
complete the Merger and to pay related fees and expenses will be
approximately US$865 million after giving effect to
proceeds received in connection with the exercise of Datascope
options and excluding Datascope’s fees and expenses.
Getinge will have sufficient funds to consummate the purchase of
Shares in the Offer and the Merger and the other transactions
described herein, and will cause the Purchaser to have
sufficient funds available to consummate such transactions.
Getinge expects to obtain the necessary funds through a
combination of
(i) cash-on-hand
and (ii) a senior, unsecured term credit facility described
below, which we refer to as the “term credit
facility.” Completion of the Offer is not conditioned upon
obtaining or funding of the term credit facility or any other
financing arrangements. Neither Getinge nor the Purchaser has
any alternative committed financing arrangements or financing
plans in the event the financing described below falls through.
The following summary of the term credit facility is qualified
in its entirety by reference to the loan agreement described
below, a copy of which is filed as an exhibit to the
Schedule TO filed with the SEC and is incorporated by
reference herein. Shareholders are urged to read the loan
agreement in its entirety for a more complete description of the
provisions summarized below.
Getinge has entered into a loan agreement dated
September 15, 2008 with SEB, one of the leading commercial
banks in Europe, under which SEB has agreed to make loans in the
aggregate amount of up to US$865 million. Getinge expects
to borrow the entire amount of the term credit facility for the
full amount
26
Table of Contents
needed to purchase all outstanding Shares pursuant to the Offer.
The term credit facility is a senior unsecured debt obligation
of Getinge and is scheduled to mature 12 months following
the date of the term credit facility, subject to exercise by
Getinge of its option to extend the maturity date by an
additional 6 months. Loans under the term credit facility
will bear interest at a rate equal to LIBOR plus an
interest margin of 0.60% (or 0.90% following the initial
maturity date if Getinge exercises its option to extend the
maturity of the term credit facility) plus certain costs
of SEB of complying with minimum reserve requirements of the
European Central Bank. In addition, Getinge will pay SEB a
one-time arrangement fee of 0.10% of the amount of the term
credit facility and an on-going fee at the rate of 0.35% of the
applicable interest margin on loans calculated on the undrawn
amount of SEB’s commitment under the term credit facility.
The loan agreement evidencing the term credit facility contains
customary representations, affirmative and negative covenants,
mandatory prepayment provisions and events of default usual for
credit facilities of the type. With respect to defaults, the
loan agreement provides that if during the
90-day
period from the date Getinge first borrows funds under the term
credit facility, a matter or circumstance exists in respect of
the Datascope or any of its subsidiaries which would otherwise
constitute an event of default, then that matter or circumstance
will not constitute an event of default until after the end of
such period. Proceeds of the term credit facility may only be
used to finance the Offer and the Merger and related fees and
expenses.
The obligation of SEB to advance any loan under the term credit
facility is subject to customary conditions precedent, including
accuracy of certain representations and warranties contained in
the term credit facility documentation and there being no
default under the term credit facility documentation. However,
during the “certain funds period” described below, SEB
is not entitled to (i) refuse to make any loan,
(ii) cancel its commitment under the term credit facility,
(iii) exercise any right of rescission, set-off or
counterclaim or other similar right or remedy it may have
relating to any loan under the term credit facility or
(iv) accelerate or cause repayment of any loan under the
term credit facility. The “certain funds period”
begins on September 15, 2008 and ends on the earliest to
occur of (a) the termination of the Merger Agreement and
the abandoning of the transaction contemplated thereby,
(b) the date on which Getinge completes the acquisition of
Datascope in accordance with the Offer and the Merger Agreement
and (c) 12 months from the date of the Merger
Agreement. The prohibition on the ability of SEB to take the
actions described above during the certain funds period does not
apply if:
• | Getinge has failed to deliver to SEB: |
- | confirmation that (i) all the conditions in the Merger Agreement have been met or waived, (ii) more than 50.0% of the shareholders of Datascope, or capital and votes, have accepted the Offer and (iii) Getinge will pursue the acquisition of Datascope in accordance with the Offer and the Merger Agreement; and | |
- | evidence of payment of all fees payable by Getinge under the term credit facility; |
• | a major default, described below, is continuing or will result from the making of a requested loan but only if the major default has a material adverse effect, also described below, or | |
• | it is unlawful for SEB to fund or make the requested loan. |
The term credit facility documentation defines a major default
as:
• | Getinge’s failure to pay amounts due under the term credit facility documentation; | |
• | Getinge’s breach of its obligations under the term credit facility documentation to: |
- | ensure that SEB’s claims against Getinge under the term credit facility documentation rank at least pari passu with the claims of Getinge’s other unsecured and unsubordinated creditors (except claims preferred under bankruptcy laws or other similar laws); | |
- | not create or permit to exist certain liens on its and its subsidiaries’ property; | |
- | not dispose of its and its subsidiaries’ assets subject to certain exceptions; |
27
Table of Contents
- | not permit any subsidiary to become liable with respect to indebtedness for money borrowed subject to certain exceptions; | |
- | indemnify SEB for any direct loss or liability SEB incurs as a consequence of any litigation proceeding arising, pending or threatened against SEB relating to the term credit facility documentation or the Offer; | |
- | to ensure that Datascope files a proxy statement with the SEC if required; or | |
- | cause the Merger to become effective as promptly as practicable, without a meeting of stockholders of Datascope, in accordance with applicable law if Getinge owns, directly or indirectly, at least 90 per cent of the outstanding shares of each class of capital stock of Datascope entitled to vote on the adoption of the Merger Agreement under the applicable law; |
• | misrepresentation insofar as it relates to Getinge’s representations in the term credit facility documentation; |
- | regarding Getinge being a duly organized corporation; | |
- | that the choice of Swedish law as the governing law of the term credit facility documentation, and any judgment obtained in Sweden, will be recognized and enforced in any proceeding in Getinge’s jurisdiction of incorporation, subject to certain exceptions; or | |
- | that Getinge’s obligations under the term credit facility documentation are legal and valid obligations binding on it and enforceable against it in accordance with their terms subject to certain exceptions; |
• | any of Getinge or certain of its material subsidiaries is unable to pay its debts as they come due, commences negotiations with creditors with a view to a moratorium or general readjustment or rescheduling of its indebtedness, or makes a general assignment for the benefit of or a composition with creditors; | |
• | any of Getinge or certain of its material subsidiaries takes any corporate action, or other steps are taken or legal proceedings are started which are not presented frivolously or vexatiously, for its winding-up or for the appointment of a receiver or similar officer of it or of any or all of its revenues and assets; or | |
• | Getinge’s performance or compliance with any of its obligations under the term credit facility documentation becomes unlawful or any of Getinge’s obligations under the term credit facility documentation ceases to be legal, valid, binding and enforceable. |
The term credit facility documentation defines a material
adverse effect as a material adverse effect on:
• | the business, operations, property or condition (financial or otherwise) of Getinge and its subsidiaries taken as a whole; | |
• | the ability of Getinge to perform its obligations under the term credit facility documentation; or | |
• | the validity or enforceability of term credit facility documentation or the rights or remedies of SEB thereunder. |
Getinge intends to refinance part of the term credit facility
through an issuance of shares to its existing shareholders to be
proposed no later than three months following the date Getinge
first borrows funds under the term credit facility. The term
credit facility provides that the proceeds from such issuance of
shares, after costs, must be at least SEK 800 million (or
approximately US$118,000,000, based on a conversion rate of 6.80
for USD/SEK) or such higher amount as may be needed so that
when applied to repay the principal balance of loans outstanding
under the term credit facility, along with proceeds from other
refinancing alternatives, the principal balance of loans
outstanding under the term credit facility is reduced to between
US$515 million and US$530 million. Xx. Xxxx
Xxxxxx, Getinge’s Chairman and principal shareholder, along
with certain affiliates of Xx. Xxxxxx, will agree to vote
in favor of the issuance of shares and to subscribe and pay for
(i) the shares to which the he is entitled under the
issuance of shares and (ii) such further shares issued in
connection with issuance of shares that are not subscribed for
by other shareholders of
28
Table of Contents
Getinge. Except for such issuance of shares, no plans or
arrangements have been made to finance or repay the term credit
facility.
Purchaser does not believe that its financial condition is
relevant to a decision by the holders of Shares whether to
tender Shares and accept the Offer because:
• | the Offer is being made for all outstanding Shares solely for cash; | |
• | Purchaser, through Getinge, will have sufficient funds available to purchase all Shares successfully tendered in the Offer and to require any remaining Shares for the same cash price in the Merger; and | |
• | the Offer is not subject to any financing condition. |
13. | DIVIDENDS AND DISTRIBUTIONS |
The Merger Agreement provides that, without the prior written
consent of Getinge, Datascope will not, and shall not permit any
of its subsidiaries to:
• | adjust, split, combine or reclassify any capital stock or otherwise amend the terms of its capital stock; | |
• | make, declare or pay any dividend (other than quarterly cash dividends as historically distributed by Datascope consistent with past practice and amounts), or make any other distribution (other than intercompany dividends or distributions paid in cash in the ordinary course of business) on, or directly or indirectly redeem, purchase or otherwise acquire or encumber, any shares of its capital stock or any securities or obligations convertible into or exchangeable for any shares of its capital stock, except in connection with cashless exercises or similar transactions pursuant to the exercise of stock options or other awards issued and outstanding as of the date of the Merger Agreement under certain Datascope compensation plans or permitted by the Merger Agreement to be granted after the date thereof; | |
• | issue, grant or award any right to acquire any shares of its capital stock, or any options, warrants, convertible securities or other rights of any kind to acquire or receive any shares of its capital stock, any other ownership interests or any voting securities (including stock appreciation rights, restricted or deferred stock units, phantom stock or similar instruments) of Datascope or any of its subsidiaries; or | |
• | issue any additional shares of capital stock except pursuant to the exercise of stock options or other awards outstanding on the date hereof issued under certain Datascope compensation plans and in accordance with the terms of such plans. |
14. | CONDITIONS OF THE OFFER |
Notwithstanding any other provisions of the Offer, but subject
to the terms and conditions set forth in the Merger Agreement,
and in addition to (and not in limitation of) Purchaser’s
rights and obligations to extend or amend the Offer in
accordance with the provisions of the Merger Agreement and any
applicable rules and regulations of the SEC, including
Rule 14e-l(c)
under the Exchange Act, Purchaser shall not be required to
accept for payment or pay for, and may delay the acceptance for
payment of or, subject to the restrictions referred to above,
the payment for, any validly tendered Shares that are not
properly withdrawn if:
• | such Shares are not tendered in the Offer such that, assuming consummation of the Offer, Getinge and Purchaser would not satisfy the Minimum Condition; | |
• | any waiting period under the HSR Act or any similar foreign competition laws applicable to the transactions contemplated by the Merger Agreement does not expire or is not terminated prior to the termination or expiration of the Offer at or prior to any then scheduled Expiration Date; | |
• | any suit, action or proceeding by any governmental entity of competent jurisdiction is pending against Getinge, Purchaser, Datascope or any subsidiary of Datascope (i) challenging the acquisition by Purchaser or Getinge of any Shares pursuant to the Offer or seeking to restrain or prohibit the making or consummation of the Offer or the Merger, (ii) seeking to impose material limitations on the ability of Purchaser or Getinge, or render Purchaser or Getinge unable, to accept for payment, pay for or |
29
Table of Contents
purchase any or all of the Shares pursuant to the Offer or the Merger or (iii) which otherwise that would impose a Materially Burdensome Condition; |
• | any statute, rule, regulation, judgment, order or injunction is enacted, entered, enforced, promulgated or which is deemed applicable pursuant to an authoritative interpretation by or on behalf of a government entity to the Offer, the Merger or any other transaction contemplated by the Merger Agreement, or any other action is taken by any Governmental Entity, other than the application to the Offer or the Merger of applicable waiting periods under the HSR Act or similar waiting periods with respect to the any similar foreign competition laws or regulation, that (x) is reasonably likely to result, directly or indirectly, in any of the consequences referred to in the foregoing conditions, or (y) has the effect of making such transactions illegal or which has the effect of prohibiting or otherwise preventing the consummation of any of the transactions contemplated by the Merger Agreement; | |
• | any declaration of a banking moratorium or any suspension of payments in respect of banks in the United States or limitation or proposed limitation by any foreign or United States governmental authority or agency has a material adverse effect generally on the extension of credit by banks or other financial institutions; | |
• | any representation or warranty of Datascope as to its capitalization, its authority to execute the Merger Agreement, or the enforceability of the Merger Agreement is not true and correct (except for any de minimis inaccuracy with regard to capitalization), and any other representation and warranty of Datascope set forth in the Merger Agreement that is qualified by reference to a Material Adverse Effect is not true and correct as of the date provided in the Merger Agreement or (C) any other representation and warranty of Datascope set forth in the Merger Agreement that is not so qualified shall not be true and correct as of the date set forth in the Merger Agreement), other than in the case of clause (C) for such failures to be true and correct that, individually or in the aggregate, have not had and would reasonably be expected to have a Material Adverse Effect; provided that for purposes of determining the satisfaction of clause (C) of this condition, the representations and warranties of Datascope that are not qualified by reference to a Material Adverse Effect shall be deemed not qualified by any references therein to materiality generally; | |
• | any fact(s), change(s), event(s), development(s) or circumstance(s) occur, arise or come into existence or become known to Datascope, Getinge or Purchaser following the date of the Merger Agreement which is continuing and which has had or would have a Material Adverse Effect; | |
• | Datascope breaches or fails, in any material respect, to perform or to comply with any agreement or covenant to be performed or complied with by it under the Merger Agreement prior to the expiration of the Offer and such breach or failure shall not have been cured; | |
• | Xxxxxxxxx fails to receive a certificate of Datascope, executed by the Chief Executive Officer and the Chief Financial Officer of Datascope, dated as of the scheduled Expiration Date, to the effect that the conditions set forth in two preceding paragraphs have not occurred; or | |
• | the Merger Agreement shall have been terminated in accordance with its terms. |
The foregoing conditions are for the sole benefit of Getinge and
Purchaser, may be asserted by Getinge or Purchaser regardless of
the circumstances giving rise to such condition, and may be
waived by Getinge or Purchaser in whole or in part at any time
and from time to time and in the sole discretion of Getinge or
Purchaser, subject in each case to the terms of the Merger
Agreement. The failure by Getinge or Purchaser at any time to
exercise any of the foregoing rights shall not be deemed a
waiver of any such right and, each such right shall be deemed an
ongoing right that may be asserted at any time and from time to
time.
The Merger Agreement defines a “Material Adverse
Effect” as any change, any fact, circumstance, event,
change, effect or occurrence that (i) has or would be
reasonably likely to have a material adverse effect on the
assets, business, results of operations or financial condition
of Datascope and its subsidiaries taken as a whole or
(ii) that would be reasonably likely to prevent or
materially delay or materially impair the ability of Datascope
to consummate the Merger or the other transactions contemplated
hereby; provided, however, that
30
Table of Contents
none of the following shall be deemed either alone or in
combination with any of the following to constitute a Material
Adverse Effect:
• | any changes in, or conditions, events or occurrences that result in a change to, the industry in which Datascope operates or conducts its business, the United States economy or capital, financial or securities markets generally, except those changes that are specifically related to, or that have a materially disproportionate effect upon, Datascope and its subsidiaries, taken as a whole, as compared to other similarly situated companies; | |
• | any changes resulting from or arising out of actions taken pursuant (and/or required by) the Merger Agreement or at the request of Getinge, or the failure to take any actions due to restrictions set forth in the Merger Agreement; | |
• | any changes in the price or trading volume of Datascope’s stock on NASDAQ (but excluding any fact, circumstance, event, change, effect or occurrence that caused or contributed to such change in market price or trading volume); | |
• | any adverse effect resulting from any change in GAAP or any applicable United States or foreign, federal, state or local laws, statutes, ordinances, rules, regulations or agency requirements of any governmental entity, or regulatory requirements, in each case, proposed, adopted or enacted after the date hereof, or the interpretation or enforcement thereof; | |
• | any changes, developments, events, effects, conditions, occurrences, actions or omissions (including the loss or departure of employees or any termination, reduction, loss, or similar negative development in Datascope’s relationship with its customers, suppliers, vendors or other business partners or employees or any cancellation of or delay in customer orders), in each case resulting from the announcement or pendency of the Merger Agreement, the Offer or the Merger or the proposal thereof; | |
• | the failure of Datascope to meet internal or analysts’ expectations or projections (but excluding any fact, circumstance, event, change, effect or occurrence that caused or contributed to such failure to meet internal or analysts’ expectations or projections); and | |
• | any legal proceedings made or brought by any of the current or former stockholders of Datascope (on their own behalf or on behalf of Datascope), or otherwise under the DGCL, arising out of or related to the Merger Agreement and any of the transactions contemplated hereby. |
15. | LEGAL MATTERS; REQUIRED REGULATORY APPROVALS |
Except as set forth in this Offer to Purchase, based on review
of publicly available filings by Datascope with the SEC and
other information regarding Datascope, neither Getinge nor
Purchaser is aware of any licenses or regulatory permits that
appear to be material to the business of Datascope and its
subsidiaries, taken as a whole, that might be adversely affected
by Purchaser’s acquisition of Shares in the Offer. In
addition, neither Getinge nor Purchaser is aware of any filings,
approvals or other actions by or with any governmental authority
or administrative or regulatory agency under laws regulating
competition other than the filings under the HSR Act applicable
to the Offer or the Merger that would be required for
Purchaser’s acquisition or ownership of the Shares. Should
any such approval or other action be required, Getinge and
Purchaser expect to seek such approval or action, except as
described under Section 15 — “State Takeover
Laws.” Should any such approval or other action be
required, Getinge and Purchaser cannot be certain that Getinge
and Purchaser would be able to obtain any such approval or
action without substantial conditions or that adverse
consequences might not result to Datascope’s or its
subsidiaries’ businesses, or that certain parts of
Datascope’s, Getinge’s, Purchaser’s or any of
their respective subsidiaries’ businesses might not have to
be disposed of or held separate in order to obtain such approval
or action. In that event, Purchaser may not be required to
purchase any Shares in the Offer. See the
“Introduction” of this Offer to Purchase and
Section 14 — “Conditions of the Offer”
for a description of the conditions to the Offer.
State Takeover Laws. A number of states
(including Delaware, where Datascope is incorporated) have
adopted takeover laws and regulations that purport, to varying
degrees, to be applicable to attempts to acquire
31
Table of Contents
securities of corporations that are incorporated in such states
or that have substantial assets, stockholders, principal
executive offices or principal places of business therein.
Section 203 of the DGCL prevents certain “business
combinations” with an “interested stockholder”
(generally, any person who owns or has the right to acquire
fifteen percent (15%) or more of a corporation’s
outstanding voting stock) for a period of three (3) years
following the time such person became an interested stockholder,
unless, among other things, prior to the time the interested
stockholder became such, the board of directors of the
corporation approved either the business combination or the
transaction in which the interested stockholder became such. The
Datascope board of directors has taken all necessary steps to
render the restrictions of Section 203 of the DGCL
inapplicable to the Offer, the Merger, the Merger Agreement and
the transactions contemplated thereby.
Purchaser has not attempted to comply with any other state
takeover statutes in connection with the Offer or the Merger.
Purchaser reserves the right to challenge the validity or
applicability of any state law allegedly applicable to the
Offer, the Merger, the Merger Agreement or the transactions
contemplated thereby, and nothing in the Offer nor any action
taken in connection therewith is intended as a waiver of that
right. In the event that it is asserted that one or more
takeover statutes apply to the Offer or the Merger, and it is
not determined by an appropriate court that such statute or
statutes do not apply or are invalid as applied to the Offer,
the Merger or the Merger Agreement, as applicable, Purchaser may
be required to file certain documents with, or receive approvals
from, the relevant state authorities, and Purchaser might be
unable to accept for payment or purchase Shares tendered
pursuant to the Offer or by delayed in continuing or
consummating the Offer. In such case, Purchaser may not be
obligated to accept for purchase, or pay for, any Shares
tendered. See Section 14 — “Conditions of
the Offer.”
Antitrust. Under the HSR Act, certain
acquisition transactions may not be consummated until
notification forms have been filed with the Federal Trade
Commission (the “FTC”) and the Antitrust Division of
the U.S. Department of Justice (the “Antitrust
Division”) and certain waiting period requirements have
been satisfied. These requirements apply to Getinge by virtue of
Purchaser’s acquisition of Shares in the Offer and the
Merger.
Under the HSR Act, the purchase of Shares in the Offer may not
be completed until the expiration of a
fifteen (15) calendar-day
waiting period following the filing of required notification
forms with the FTC and the Antitrust Division, unless the
waiting period is earlier terminated by the FTC and the
Antitrust Division. Getinge expects to file a Premerger
Notification and Report Form under the HSR Act with the FTC and
the Antitrust Division in connection with the purchase of Shares
in the Offer and the Merger, and the required waiting period
with respect to the Offer and the Merger will expire at
11:59 p.m., New York City time, on the fifteenth (15th)
calendar-day
after the filing, unless earlier terminated by the FTC or the
Antitrust Division or Getinge receives a request for additional
information or documentary material prior to that time. If,
within the fifteen
(15) calendar-day
waiting period, either the FTC or the Antitrust Division
requests additional information or documentary material from
Getinge, the waiting period with respect to the Offer and the
Merger would be extended for an additional period of ten
calendar days following the date of Getinge’s substantial
compliance with that request. If either the fifteen
(15) calendar-day
or ten
(10) calendar-day
waiting period expires on a Saturday, Sunday or legal public
holiday, then the period is extended until the end of the next
day that is not a Saturday, Sunday or legal public holiday. The
FTC or the Antitrust Division may terminate the additional ten
(10) calendar-day
waiting period waiting period before its expiration. In
practice, complying with a request for additional information or
documentary material can take a significant period of time.
Although Datascope is required to file certain information and
documentary material with the FTC and the Antitrust Division in
connection with the Offer, neither Datascope’s failure to
make those filings nor a request made to Datascope from the FTC
or the Antitrust Division for additional information or
documentary material will extend the waiting period with respect
to the purchase of Shares in the Offer and the Merger.
The FTC and the Antitrust Division frequently scrutinize the
legality under the antitrust laws of transactions, such as
Getinge’s acquisition of Shares in the Offer and the
Merger. At any time before or after Purchaser’s purchase of
Shares, the FTC or the Antitrust Division could take any action
under the antitrust laws that it either considers necessary or
desirable in the public interest, including seeking to enjoin
the
32
Table of Contents
purchase of Shares in the Offer and the Merger, the divestiture
of Shares purchased in the Offer or the divestiture of
substantial assets of Getinge, Purchaser, Datascope or any of
their respective subsidiaries or affiliates. Private parties as
well as state attorneys general also may bring legal actions
under the antitrust laws under certain circumstances. See
Section 14 — “Conditions of the Offer.”
While Getinge and Purchaser believe that they will receive the
requisite clearance under the HSR Act, there can be no
assurances that a challenge to the Offer and the Merger on
antitrust grounds will not be made, or, if such challenge is
made, what the result will be. See Section 14 —
“Conditions of the Offer.”
16. | FEES AND EXPENSES |
Xxxxxxx Xxxxx, Xxxxxx Xxxxxx & Xxxxx Incorporated
(“Xxxxxxx Xxxxx”) is acting as Dealer Manager in
connection with the Offer and Xxxxxxx Xxxxx or its affiliates
have provided certain financial advisory services to Getinge in
connection with the proposed acquisition of Datascope, for which
services Xxxxxxx Xxxxx will receive customary compensation. In
addition, Getinge and Xxxxxxxxx have agreed to reimburse Xxxxxxx
Xxxxx for reasonable fees and expenses, including reasonable
fees and disbursements of Xxxxxxx Xxxxx’x counsel, incurred
in connection with Xxxxxxx Xxxxx’x engagement, and to
indemnify Xxxxxxx Xxxxx, and certain related parties against
specified liabilities, including liabilities under the federal
securities laws. Xxxxxxx Xxxxx and its affiliates have provided
and may in the future provide various investment banking,
financial advisory and other services to Getinge or its
affiliates, for which they have received or may receive
customary compensation. In the ordinary course of business,
Xxxxxxx Xxxxx and its affiliates may actively trade or hold
securities or loans of Getinge for their own accounts or for the
accounts of customers and, accordingly, Xxxxxxx Xxxxx
and/or its
affiliates may at any time hold long or short positions in these
securities or loans.
Purchaser has retained Xxxxxxxxx, Inc. as Information Agent in
connection with the Offer. The Information Agent may contact the
Datascope stockholders by mail, telephone, telex, telegraph and
personal interview and may request brokers, dealers and other
nominee stockholders to forward material relating to the Offer
to beneficial owners of Shares. Purchaser will pay the
Information Agent reasonable and customary compensation for
these services in addition to reimbursing the Information Agent
for its reasonable out-of-pocket expenses. Xxxxxxxxx has agreed
to indemnify the Information Agent against certain liabilities
and expenses in connection with the Offer, including certain
liabilities under the U.S. federal securities laws. In
addition, Purchaser has retained American Stock
Transfer & Trust Company, LLC as the Depositary.
In connection with the Offer, Purchaser will pay the Depositary
reasonable and customary compensation for its services, will
reimburse the Depositary for its reasonable out-of-pocket
expenses, and will indemnify the Depositary against certain
liabilities and expenses, including certain liabilities under
the U.S. federal securities laws.
Except as set forth above, neither Getinge nor Purchaser will
pay any fees or commissions to any broker, dealer or other
person for soliciting tenders of Shares pursuant to the Offer.
Purchaser will reimburse brokers, dealers, commercial banks and
trust companies and other nominees, upon request, for customary
clerical and mailing expenses incurred by them in forwarding
offering materials to their customers.
17. | MISCELLANEOUS |
Getinge and Purchaser are not aware of any jurisdiction where
the making of the Offer is prohibited by any administrative or
judicial action pursuant to any valid state statute. If Getinge
and Purchaser become aware of any valid state statute
prohibiting the making of the Offer or the acceptance of the
Shares, Getinge and Purchaser will make a good faith effort to
comply with that state statute. If, after a good faith effort,
Getinge and Purchaser cannot comply with the state statute,
Purchaser will not make the Offer to, nor will Purchaser accept
tenders from or on behalf of, the Datascope stockholders in that
state. Getinge and Purchaser have filed with the SEC a Tender
Offer Statement on Schedule TO pursuant to
Rule 14d-3
promulgated under the Exchange Act, together with exhibits
furnishing certain additional information with respect to the
Offer, and may file amendments thereto. In addition, Datascope
has filed with the SEC a Solicitation/Recommendation Statement
on
Schedule 14D-9,
together with exhibits, pursuant to
Rule 14d-9
promulgated under the Exchange Act, setting forth the
recommendation of the Datascope board of directors with respect
to the Offer
33
Table of Contents
and the reasons for the recommendation of the Datascope board of
directors and furnishing certain additional related information.
A copy of these documents, and any amendments thereto, may be
examined at, and copies may be obtained from, the SEC in the
manner set forth under Section 8 —
“Information Concerning Datascope” and
Section 9 — “Information Concerning Getinge
and Purchaser.”
Neither Getinge nor Purchaser has authorized any person to
give any information or to make any representation on behalf of
either Getinge or Purchaser not contained in this Offer to
Purchase or in the related Letter of Transmittal, and, if given
or made, you should not rely on any such information or
representation as having been authorized.
Neither the delivery of the Offer to Purchase nor any purchase
pursuant to the Offer will, under any circumstances, create any
implication that there has been no change in the affairs of
Getinge, Purchaser, Datascope or any of their respective
subsidiaries since the date as of which information is furnished
or the date of this Offer to Purchase.
GETINGE AB (publ)
September 30, 2008
34
Table of Contents
SCHEDULE I
DIRECTORS
AND EXECUTIVE OFFICERS OF GETINGE AB AND PURCHASER
1. | GETINGE AB |
The following table sets forth the name and present principal
occupation or employment, and material occupations, positions,
offices or employment for the past five (5) years of each
director and executive officer of Getinge AB. Unless otherwise
indicated, each director and executive officer has been so
employed for a period in excess of five (5) years. Unless
otherwise indicated, the business address of each of these
individuals is Getinge AB, at Xxxxxxxxxxxxx 00, Xxxxxxx, Xxxxxx
SE-310 44, and each of these individuals is a citizen of Sweden.
Directors
Name
|
Principal Occupation and Five-Year Employment History
|
|
Xxxx Xxxxxx Chairman of the Board |
Xx. Xxxxxx joined the Getinge board of directors in 1989 and has served as Chairman of the Board since 1997. Xx. Xxxxxx currently serves as chairman of the nomination committee and remuneration committee. In addition to his work with Getinge, Xx. Xxxxxx currently serves as Chairman of the Board of Elanders AB, the University of Gothenburg and Lifco AB; Deputy Chairman of Boliden AB; board member of SSAB; and member of the Swedish Government’s Research Advisory Board. Xx. Xxxxxx previously served as President and Chief Executive Officer of Getinge from 1989 to 1997. Xx. Xxxxxx is the Chief Executive Officer, Chairman of the Board, and sole shareholder of Xxxx Xxxxxx AB, an affiliate and the largest shareholder of Getinge. Xx. Xxxxxx is a citizen of Sweden. | |
Xxxxx Xxxxx
|
Xxxxx Xxxxx joined the Getinge board of directors in 2007. Mr. Xxxxx is a member of the auditing committee. In addition to his work with Getinge, Mr. Xxxxx has served as the Chief Financial Officer of Investor AB, an industrial holding company, since September 2007. He is a board member of HI3G, Isaberg Rapid AB, the Industry and Commerce Stock Exchange Committee, the Association for Generally Accepted Principles in the Securities Market and the Listed Companies Association and Novare Holding AB. From 1987 to 2006, Mr. Xxxxx held several positions with Electrolux, a manufacturer of home and professional appliances, including Chief Executive Officer of Electrolux Major Appliance Europe and Asia Pacific from 2004 to 2006, Chief Executive Officer of Electrolux Major Appliance International from 2003 to 2004, and Chief Executive Officer of Electrolux Consumer Outdoor Products outside of North America from 2001 to 2003. Mr. Xxxxx is a citizen of Sweden. | |
Xxxx Xxxxxxxxx
|
Xxxx Xxxxxxxxx joined the Getinge board of directors in 2007 as deputy member on behalf of the Swedish white-collar trade union (Unionen). Since 1995, Xx. Xxxxxxxxx has been an employee of Arjo Hospital Equipment AB, a manufacturer of medical care products. Xx. Xxxxxxxxx is a citizen of Sweden. | |
Xxx Xxxxxxxx
|
Xxx Xxxxxxxx joined the Getinge board of directors in 2006 as a deputy member on behalf of the Swedish Metalworkers’ Union. Since 2008, Xx. Xxxxxxxx has served as an ordinary representative member on behalf of the Swedish Metalworkers’ Union. Since 1990, Xx. Xxxxxxxx has been an employee of Arjo Hospital Equipment AB, a manufacturer of medical care products. Xx. Xxxxxxxxx is a citizen of Sweden. | |
35
Table of Contents
Name
|
Principal Occupation and Five-Year Employment History
|
|
Xxxx Xxxxxxx
|
Xxxx Xxxxxxx joined the Getinge board of directors in 2004 and is a member of the auditing committee. Xx. Xxxxxxx also currently serves as the Chairman of the Board of ROL International AB, NJ Holding AB and Garpco AB and as a member of the board of Rörvik Timber AB, Arcam AB and Västervik Framåt AB. Xx. Xxxxxxx formerly served as President of Munksjö AB, a manufacturer of paper products, from January 2001 to April 2004, and he served as a Chief Executive Officer of Rörvik Timber AB, a manufacturer of timber products, from 2001 to 2004. Xx. Xxxxxxx is a citizen of Sweden. | |
Xxxxxx Xxxxxx
|
Xxxxxx Xxxxxx joined the Getinge board of directors in 2008 as a deputy member on behalf of the Swedish Metalworkers’ Union. Since 2005, Xx. Xxxxxx has been an employee of Getinge Disinfection AB, a manufacturer of sterilization products. From 1999 to 2005, Xx. Xxxxxx served as a coordinator at Vida Timber AB, a provider of timber products. Xx. Xxxxxx is a citizen of Sweden. | |
Xxxxxx Xxxxx
|
Xxxxxx Xxxxx joined the Getinge board of directors in 2003 and is a member of Getinge’s auditing committee. In addition to her work with Getinge, Xx. Xxxxx has served as President and Chief Executive Officer of Praktikertjänst AB, a Swedish health care provider, since March 2008. She has also served as associate professor at the Karolinska Institutet since 1998. Xx. Xxxxx is a board member of Praktikertjänst AB, the Praktikertjänst Pension Fund, Praktikertjänst Insurance AB, the Strategic Research Foundation and Apoteket AB. She is also a member of the governmental Delegation for Co-operation on Clinical Research and of the Scientific Advisory Board of Industrifonden. Xx. Xxxxx served as Chief Executive Officer of Danderyd University Hospital AB from August 2000 to November 2007. Xx. Xxxxx is a citizen of Sweden. | |
Xxxxx Xxxxxxxxx
|
Xxxxx Xxxxxxxxx joined the Getinge board of directors in 1997. Xx. Xxxxxxxxx has been employed by Getinge since 1990 and has served as President and Chief Executive Officer since May 2007. He is a citizen of Sweden. | |
Xx Xxxxxx
|
Xx Xxxxxx has been a representative member and deputy member of the Getinge board of directors since 2006. Xx. Xxxxxx currently serves as a representative member on behalf of the Swedish white-collar trade union (Unionen). Xx. Xxxxxx has been employed by Maquet Critical Care AB, a medical devices manufacturer, since 2001. Xx. Xxxxxx is a citizen of Sweden. | |
Xxxxxxxxx Xxxxxx Xxxxxxxxxx
|
Xx. Xxxxxx Xxxxxxxxxx joined the Getinge board of directors in 2004 and serves as a member of Getinge’s remuneration committee. In addition to her work with Getinge, Xx. Xxxxxxxxxx currently serves as Professor of Integrated Product Development at the Royal Institute of Technology (KTH), in Stockholm, Sweden, where she has been employed since 1988. Xx. Xxxxxxxxxx also serves as Chairman of the Board of CTMH and is a board member of VINNOVA. Xx. Xxxxxxxxxx previously served as Vice President at KTH, Stockholm from 1999 to 2007 and as Professor at the Norwegian University of Science and Technology (NTNU), Trondheim prior to 1995. Xx. Xxxxxxxxxx is a citizen of Sweden. | |
36
Table of Contents
Name
|
Principal Occupation and Five-Year Employment History
|
|
Xxxxx Xxxxx
|
Xxxxx Xxxxx has served as a director of the Getinge board since 2004. Xx. Xxxxx is a member of the Getinge auditing committee and remuneration committee. Xx. Xxxxx is Chairman of the Board of Healthinvest Partners AB, and he a board member of Xxxx Xxxxxx AB, Elanders AB, Lifco AB, Sigtunaskolan Humanistiska Läroverket, Strand Kapitalförvaltning AB and Rolling Optics AB. Xx. Xxxxx was partner of FMG Fund Managers Ltd. from September 1998 to December 2003. Xx. Xxxxx is a citizen of Sweden. |
Executive
Officers
Name
|
Principal Occupation and Five-Year Employment History
|
|
Xxxxx Xxxxxxxxx President and CEO |
Xxxxx Xxxxxxxxx joined the Getinge board of directors in 1997. Xx. Xxxxxxxxx has been employed by Getinge since 1990 and has served as President and Chief Executive Officer since May 1997. He is a citizen of Sweden. | |
Xxxxxxxx Xxxxxxxx Executive Vice President Medical Systems |
Xxxxxxxx Xxxxxxxx has served as Executive Vice President for Medical Systems since November 2001. Since January 2008, Mr. Xxxxxxxx has also served as President of Maquet LLC. Mr. Xxxxxxxx is a German citizen. | |
Xxx Xxxxxxxxx Chief Financial Officer |
Xxx Xxxxxxxxx has served as Chief Financial Officer since 1993. Xx. Xxxxxxxxx is a Swedish citizen. | |
Xxxxxxxx Xxxxx Executive Vice President Infection Control |
Xxxxxxxx Xxxxx has served as Executive Vice President Infection Control since 2007. From January 2005 to June 2007, Xx. Xxxxx served as the Chief Executive Officer for Berendsen, a textile service company, and from September 2001 to January 2005, Xx. Xxxxx served as the President of Berendsen Textilservice AB, a subsidiary within the Berendsen Group. Xx. Xxxxx is a Swedish citizen. | |
Xxxxxxx Xxxx Executive Vice President Extended Care |
Xxxxxxx Xxxx has served as Executive Vice President Extended Care since September 2005. From February 2001 to July 2004, Xx. Xxxx served as Chief Executive Officer of ALTO Europe, a manufacturer of industrial high pressure washers and vacuum cleaners. Xx. Xxxx is a Swedish citizen. | |
Xxxxxxx Xxxxxx Executive Vice President Sales & Marketing Medical Systems |
Xxxxxxx Xxxxxx has served as Executive Vice President Sales & Marketing Medical Systems since November 2001. Xx. Xxxxxx is a German citizen. | |
Xxxxxx Xxxxxxxx Executive Vice President Resources |
Xxxxxx Xxxxxxxx, PhD. has served as Executive Vice President Human Resources since 2008. Prior to his employment at Getinge, Xx. Xxxxxxxx served as the Vice President of Human Resources at Volvo Cars from July 2006 to January 2008, as human resources manager from July 2004 to July 2006, and as a senior research engineer at Volvo Cars/Ford Motor Company from 1999 to 2004. Xx. Xxxxxxxx is a Swedish citizen. |
PURCHASER
Directors
The following table sets forth the name and present principal
occupation or employment, and material occupations, positions,
offices or employment for the past five (5) years of each
director of Purchaser. Unless otherwise indicated, each director
and executive officer has been so employed for a period in
excess of five (5) years. Unless otherwise indicated below,
each occupation set forth opposite each person refers to
employment
37
Table of Contents
with Purchaser. The business address of each of these
individuals is DaVinci Merger Sub, Inc.
c/o Getinge
AB Ekebergsvagen 26, Getinge, Sweden SE-310 44, and each of
these individuals is a citizen of the Sweden.
Name
|
Principal Occupation and Five-Year Employment History
|
|
Xxxxx Xxxxxxxxx
|
Xxxxx Xxxxxxxxx joined Purchaser’s board of directors in 2008. Xx. Xxxxxxxxx has served on Getinge’s board of directors since 1997, has been employed by Getinge since 1990 and has served as President and Chief Executive Officer since May 1997. He is a citizen of Sweden. | |
Xxx Xxxxxxxxx
|
Xxx Xxxxxxxxx joined Purchaser’s board of directors in 2008. Xx. Xxxxxxxxx has served as Chief Financial Officer of Getinge since 1993. Xx. Xxxxxxxxx is a Swedish citizen. | |
Xxxxxxxx Xxxxxxxx
|
Xxxxxxxx Xxxxxxxx joined Purchaser’s board of directors in 2008. Mr. Xxxxxxxx has served as Getinge’s Executive Vice President for Medical Systems since November 2001. Since January 2008, Mr. Xxxxxxxx has also served as President of Maquet LLC. Mr. Xxxxxxxx is a German citizen. | |
Xxxxxxx Xxxxxx
|
Xxxxxxx Xxxxxx joined Purchaser’s board of directors in 2008. Xx. Xxxxxx has served as Getinge’s Executive Vice President Sales & Marketing Medical Systems since November 2001. Xx. Xxxxxx is a German citizen. | |
Xxxxxxxx Xxxxx
|
Xxxxxxxx Xxxxx joined Purchaser’s board of directors in 2008. Xx. Xxxxx has served as Getinge’s Chief Financial Officer for Medical Systems since October 2002. Xx. Xxxxx is a German citizen. |
Executive
Officers
The following table sets forth the name and present principal
occupation or employment, and material occupations, positions,
offices or employment for the past five (5) years of each
executive officer of Purchaser. Unless otherwise indicated, each
director and executive officer has been so employed for a period
in excess of five (5) years. Unless otherwise indicated
below, each occupation set forth opposite each person refers to
employment with Purchaser. The business address of each of these
individuals is DaVinci Merger Sub, Inc.
c/o Getinge
AB Ekebergsvagen 26, Getinge, Sweden SE-310 44, and each of
these individuals is a citizen of the Sweden.
Name
|
Principal Occupation and Five-Year Employment History
|
|
Xxx Xxxxxxxxx President |
Xxx Xxxxxxxxx has been President of Purchaser since 2008. Xx. Xxxxxxxxx has served as Chief Financial Officer of Getinge since 1993. Xx. Xxxxxxxxx is a Swedish citizen. | |
Xxxxxxxxx Xxxxxx Vice President |
Xxxxxxxxx Xxxxxx has been Vice President of Purchaser since 2008. Xx. Xxxxxx has been employed by Getinge since November 2001, and he has served as a President of Xxxxxx Xxxxxxxxxxxxxxx AG since December 2005. Xx. Xxxxxx also served as the Managing Director of Medikomp GmbH from May 2000 to December 2004, President and Chief Executive Officer of Maquet Critical Care AB from January 2005 to August 2005, and Managing Director of Medikomp GmbH from September 2005 to November 2005. Xx. Xxxxxx is a German citizen. | |
Xxxxxxxx Xxxxxxxx Treasurer |
Xxxxxxxx Xxxxxxxx has been Treasurer of Purchaser since 2008. Mr. Xxxxxxxx has served as Getinge’s Executive Vice President for Medical Systems since November 2001. Since January 2008, Mr. Xxxxxxxx has also served as President of Maquet LLC. Mr. Xxxxxxxx is a German citizen. | |
Xxxxxxxxx Xxxxx Secretary |
Xxxxxxxxx Xxxxx has been Secretary of Purchaser since 2008. Xx. Xxxxx has been employed by Getinge since 2002, and has served as Chief Financial Officer at Getinge USA Inc., since 2007. From 2002 to 2007, Xx. Xxxxx was employed as a Divisional Controller for Surgical Workplaces at Maquet GmbH & Xx.XX. Xx. Xxxxx is a German citizen. |
38
Table of Contents
Facsimile copies of Letters of Transmittal, properly completed
and duly executed, will be accepted. The appropriate Letter of
Transmittal, the Share Certificates and any other required
documents should be sent or delivered by each Datascope
stockholder or the Datascope stockholder’s broker, dealer,
commercial bank, trust company or other nominee to the
Depositary at one of its addresses set forth below:
The
Depositary for the Offer is:
Facsimile: (000) 000-0000 | By Mail or Overnight Delivery: | By Hand or Courier: | ||
Confirm by Telephone:
(000) 000-0000 or (000) 000-0000 |
American Stock Transfer & Trust Company Operations Center Attn: Reorganization Department 0000 00xx Xxxxxx Xxxxxxxx, XX 00000 |
American Stock Transfer & Trust Company Attn: Reorganization Department 00 Xxxxxx Xxxx Xxxxxxxxx Xxxxx Xxx Xxxx, XX 00000 |
You may direct questions and requests for assistance to the
Information Agent at its address and telephone number set forth
below. You may obtain additional copies of this Offer to
Purchase, the related Letter of Transmittal and other tender
offer materials from the Information Agent as set forth below,
and they will be furnished promptly at Getinge’s expense.
You also may contact your broker, dealer, commercial bank, trust
company or other nominee for assistance concerning the Offer.
The
Information Agent for the Offer is:
000 Xxxxx
Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000-0000
Banks and Brokers Call (000) 000-0000
All Others Call Toll Free (000) 000-0000
Xxx Xxxx, XX 00000-0000
Banks and Brokers Call (000) 000-0000
All Others Call Toll Free (000) 000-0000
You may also direct questions and requests for assistance to the
Dealer Manager at its address and telephone number set forth
below.
The
Dealer Manager for the Offer is:
Xxxxxxx
Xxxxx & Co.
Four World
Financial Center
New York, New York 10080
Call Toll Free: (000) 000-0000
International Callers: (000) 000-0000
New York, New York 10080
Call Toll Free: (000) 000-0000
International Callers: (000) 000-0000