U.S. Surgical Renews Bid for Circon

U.S. Surgical Corp. said it has begun another hostile tender offer to acquire the rest of Santa Barbara-based Circon Corp., a maker of devices for minimally invasive surgery that it has been pursuing for a year. The offer, which values Circon at about $218 million, is for $16.50 a share. Norwalk, Conn.-based U.S. Surgical also makes products meant to lower the cost of surgery and other medical treatments. It already owns 14.8% of Circon. U.S. Surgical called the new offer “highly attractive” for Circon shareholders and said that while it would prefer to negotiate a friendly deal with Circon management, “they have turned down every request for a meeting.” U.S. Surgical said the offer is subject to its acquiring at least 67% of Circon’s shares and on canceling Circon’s “poison pill” anti-takeover plan. U.S. Surgical’s stake in Circon is as big as it can be without triggering that defense mechanism. U.S. Surgical is the largest U.S. producer of laparoscopic scopes, video systems and endoscopic suction irrigation devices, used in surgery and for diagnosis. Circon said its board will review the latest offer. Circon shares rose 63 cents to close at $15.50 on Nasdaq; U.S. Surgical shares fell 50 cents to $36.25 on the New York Stock Exchange.