Imagyn Medical Is Subject of Bidding War

Medical devices maker Imagyn Medical Inc., set to be acquired by Newport Beach-based Urohealth Systems Inc., received a higher offer from giant U.S. Surgical Corp. Imagyn, which makes devices for minimally invasive surgery, said it’s calling a meeting of its board to consider the $57.5-million offer--a cash or stock deal valued about 20% higher than Urohealth’s all-stock bid. Laguna Niguel-based Imagyn wouldn’t comment further, though analysts speculated that Urohealth would likely lose any takeover battle. “If Urohealth sweetens their deal, U.S. Surgical is still likely to prevail because they have deeper pockets,” said John Calcagnini, an analyst at Oppenheimer & Co. A spokesman for Norwalk, Conn.-based U.S. Surgical said its offer was unsolicited but that it’s too early to say whether the deal will be hostile or friendly. Urohealth executives declined to comment. Imagyn shares rose 69 cents to close at $6.63 on Nasdaq; Urohealth shares lost 63 cents to close at $4.63, also on Nasdaq; U.S. Surgical lost 31 cents to close at $36.88 on the New York Stock Exchange.