Business
Leading Proxy Advisory Firms Recommend that MDS Shareholders Vote in Favour of the Divestiture of MDS Analytical Technologies
Leading Proxy Advisory Firms Recommend that MDS Shareholders Vote in Favour of the Divestiture of...
About this update from Discovery Harbour Resources Corp.
[{"type":"text","content":"\n\n\n\nOct. 8, 2009 (Canada NewsWire Group) -- TORONTO, Oct. 8 /CNW/ -- MDS Inc. (TSX: MDS; NYSE: MDZ), a leading provider of products and services to the global life-sciences markets, today announced that three renowned proxy advisory firms - RiskMetrics Group, PROXY Governance, Inc., and Glass, Lewis & Co. - have recommended that MDS Inc. shareholders vote in favour of the sale of MDS Analytical Technologies for $650 million in cash to Danaher Corporation (NYSE: DHR). The sale was announced on September 2, 2009 and is subject to shareholder and regulatory approval, and other closing conditions.\"The MDS Board of Directors is pleased with the support of these highly respected proxy advisory firms and their recommendations that shareholders vote in favour of the sale of the MDS Analytical Technologies business,\" said James S. A. MacDonald, Chairman of MDS Inc.'s Board of Directors. \"We believe the divestiture enables a substantial return of proceeds to shareholders and is in the best interests of the Company.\"The Company currently intends to return approximately $400 million to $450 million of the sale proceeds to its shareholders by way of a share buyback through a Substantial Issuer Bid.Divestiture Endorsed by Independent Third PartiesIn its report, RiskMetrics, a leading provider of risk management and corporate governance services, noted that \"the market has reacted clearly positively\" to the proposed divestiture and that \"shareholders are seeing value unlocked as a result of the Sale\". RiskMetrics concludes its analysis by indicating that \"the Sale Agreement warrants shareholder support.\"PROXY Governance, a leading proxy advisory and voting firm, also endorsed the proposed transaction by MDS Inc., stating that \"we generally support this sale transaction because it appears to place a fair value on the company based on the overall market reaction. The deal also appears to have unlocked additional value to shareholders. In addition, we support the board's active engagement in the process, as well as the use of an auction process to help maximize shareholder value.\"Glass, Lewis & Co., a governance analysis and proxy voting firm, noted that MDS's \"share price has increased 43% since the announcement\" and that the firm recommends \"that shareholders vote FOR this proposal.\"Special Meeting of ShareholdersMDS Inc. ha...