Medtronic Sues Avecor Over Third-Party Offer

Medtronic Inc. has brought an action against Avecor to prohibit the company from entering into discussions or negotiations with the party that submitted a bid for Avecor earlier this week. Otherwise, the action requested that Avecor terminate its merger agreement with Medtronic.

As part of its action, Medtronic sought a temporary restraining order from the court to temporarily prevent Avecor from discussing or negotiating such a transaction. Last week, Avecor received an unsolicited offer from a major medical device manufacturer for the purchase of all of the company's outstanding common stock at a price of $13 per share.

The Anoka County District Court ruled that Avecor could continue to participate in any actions permitted by the merger agreement with Medtronic, and Avecor intends to continue to discuss a potential transaction with the other party. The court did rule that Avecor could not terminate its merger agreement with Medtronic or enter into an agreement to be acquired by any other party prior to a temporary injunction hearing to be held on December 7, 1998. Avecor intends to abide by the terms of its merger agreement with Medtronic, which remains in effect.