Given Surges in Tel Aviv as Covidien Buys Shares at Premium

Given Imaging Ltd. (GIVN) jumped to the highest level in six years after Covidien Plc (COV) said it would buy the Israeli maker of swallowable cameras at a 27 percent premium to the closing price of its U.S. traded shares.

Shares of Yokneam, Israel-based Given advanced 21 percent to 98.70 shekels, or the equivalent of $28.18, the highest since November 2007. The company’s U.S. traded shares closed at $23.65 on Dec. 12.

Covidien, the Dublin, Ireland-based medical instrument maker, said it would buy all of the outstanding shares of Given for $30 a share in cash, for a total of about $860 million. Shares of Given have more than doubled from their low in June amid speculation of a takeover deal. The company’s flagship product is the Pillcam -- a swallowed optical endoscopy technology for the small bowel, esophagus and colon.

“This transaction is in the best interests of Given Imaging, its shareholders and employees,” said Homi Shamir, president and chief executive officer of Given, said in BusinessWire statement today.

The acquisition is Covidien’s third in Israel in the past two years, according to data compiled by Bloomberg. It bought Polytouch Medical Ltd. in April 2012 and Oridion Systems Ltd. in July 2012. With the most startup firms per capita of any country in the world, cash is pouring into Israel as investors from Google Inc. to Cisco Systems Inc. buy local companies, helping the shekel beat every major currency versus the dollar.

The company forecast today that upon closing of the transaction, Given will add as much as $50 million per quarter in incremental revenue to the medical devices segment.

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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