DEALTALK-Boardroom bid may prompt SurModics' pharma sale
BANGALORE, Dec 3 (Reuters) - A move by hedge fund Ramius to nominate three members to SurModics Inc's (SRDX.O) board signals a likely proxy battle to control the struggling medical equipment maker, and the eventual sale of its pharma business or even the whole company.
SurModics, a $160 million company that specializes in drug delivery technology, has come under investor fire since its CEO Bruce Barclay resigned in June and the company posted a surprise quarterly loss and gave a disappointing outlook in November.
On Nov. 17, Ramius said it had bought a 12 percent stake in SurModics, and the market expects firm action from a hedge fund with a reputation for overturning underperforming management.
"They know what they want, they're going to go out for what they want and they're not going to be quiet about it. This could be the start of the makeover," said Avondale Partners analyst Daniel Owczarski.
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In recent months, Ramius has had directors of its choice elected to the boards of both Extreme Networks Inc (EXTR.O) and Aviat Networks Inc (AVNW.O).
Ramius wants to have a say in who is CEO and would want a CEO who shares its strategy, said Owczarski.
Ramius, which has launched a hostile $164 million bid for Cypress Bioscience Inc (CYPB.O), declined to comment.
Rodman & Renshaw analyst Suraj Kalia said it would be interesting to see how an activist investor would seek to fix SurModics, which is R&D intensive and offers customized products.
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