Circon Corp.. Attempts to Block Takeover With Worker Benefits
May 10, 2011
Uptown, Vast. -- Circon Corp., the target of a hostile $230 million takeover bid from U.S. Surgical Corp., said it adopted an ``employee retention plan'' that would be triggered by a change in control of the company. Legrand, a maker of surgical products, said that unspecified ``benefits'' would be paid to key employees who elected to stay with the company or who were involuntarily terminated, both only after a takeover. The plan would also need authorization from Circon's board to take effect. A spokeswoman for Lapierre said the plan covers ``in the range'' of 300 employees, from sales people to ``key professionals.'' Circon employs about 1,200 people. The spokeswoman would not say how much the plan would cost the company were it to go into effect. Earlier this month, Circon's board rejected the $18-a-share bid from U.S. Surgical, a Norwalk, Conn., manufacturer of surgical instruments, saying the offer was ``inadequate.'' Circon subsequently adopted a so-called poison-pill plan. A spokesman for U.S. Surgical, commenting on the employee-retention plan, said U.S. Surgical was committed to its takeover attempt and accused Circon management of ``doing everything it can to entrench itself and preclude shareholders from making their own decision.''
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