PerkinElmer Inc., a company with which MDS Inc. (MDZ) has a
joint-venture deal, has filed a notice with the Ontario Superior
Court of Justice seeking alternatives to the planned sale of MDS's
analytical technologies business to Danaher Corp. (DHR).
MDS said one of the proposed alternatives is an interim and
permanent injunction preventing the completion of the sale of MDS
Analytical Technologies business to Danaher.
As reported in early September, MDS agreed to sell its
analytical technologies business to Danaher for US$650 million. Its
interest in the PerkinElmer joint venture is part of that sale.
The company said its joint-venture with PerkinElmer is for the
development, manufacture and sale of inductively coupled plasma
mass spectrometers. It said this product line represents less than
10% of annual revenue generated by the analytical technologies
business.
Terms of the joint-venture deal require PerkinElmer's approval
of the sale to Danaher, which MDS hasn't yet received. If consent
isn't received, MDS said it has agreed to retain its interest in
the joint venture.
MDS believes it has a strong position and, if necessary, plans
to defend the claim. It said it continues to believe the sale to
Danaher will close in the first calendar quarter of 2010.
-By Judy McKinnon, Dow Jones Newswires; 416-306-2100;
judy.mckinnon@dowjones.com