Lifecore Biomedical Inc. said Monday that Alcon Surgical Inc.,its major shareholder, has filed with the Securities andExchange Commission to sell all or part of its 19.7 percent stakein Lifecore.
Lifecore stock (NASDAQ:LCBM) closed Monday at $9.38, down$1.25.
James Bracke, Lifecore president and chief executive, said theMinneapolis company had expected the filing. Alcon is a whollyowned subsidiary of Nestle SA of Switzerland, which has a rulethat its affiliates cannot hold a supplier's stock.
Lifecore sells hyaluronic acid to Alcon through an agreementthat extends through 1992. HA is used in ophthalmic surgery tomaintain fluid in the eye. Alcon's $600,000 of purchasescomprised 37 percent of Lifecore's revenues in the quarterended March 31. Genzyme Corp. of Cambridge, Mass., also sellsHA to Alcon.
Alcon acquired the shares in 1989 when it bought a unit ofCooperVision Inc. that owned shares in Lifecore. Alcon wasunable to divest the shares under provisions of the acquisitionagreement that have now lapsed, said Bracke.
Alcon, based in Forth Worth, Texas, has engaged M.J.Friedlander Co. Inc. of Seven Pines, N.C., as its financial adviserin the transaction.
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