MTF Withdraws Bid for Osteotech
BY JOHN MCCORMICK, OCTOBER 18, 2005
Last night Osteotech, Inc. (Nasdaq: OSTE) communicated that Musculoskeletal Transplant Foundation ("MTF") has withdrawn its $6.25 a share bid.
Today many shareholders voted with their feet and the stock has dropped by $1 a share to $3.88 (or over 20%). So much for a great deal for the OSTE shareholders, so much for over $40 million of shareholder value (not to mention nearly $200 million over the last two years), so much for increased tissue processing efficiency, etc., etc.
Not that all is lost here, Osteotech has managed to elude the tissue processing industry's supply scandal by not having done any business with ill reputed Biomedical Tissue Services Ltd. who is now under investigation for falsifying donor records. Whether that's luck or good business practices is hard to tell. What we can be sure of is that OSTE shareholders will get more of the same. Possibly for years to come.
