OFIX - Orthofix holders should vote in favor of merger with SeaSpine ISS says

Orthofix Medical ( NASDAQ: OFIX ) holders should vote to issue shares in connection with the company's planned merger with SeaSpine ( NASDAQ: SPNE ) even after a rival bidder emerged for OFIX, proxy adviser ISS recommended.

"The merger appears preferable to the unsolicited acquisition proposal due to concerns about the proposal's certainty and valuation, expectations that the merger will generate cost synergies, the merger's logical strategic rationale, and the reasonable merger valuation," ISS said in a report earlier this week.

The recommendation comes ahead of Jan. 4 shareholder vote on the transaction and after Orthofix ( OFIX ) earlier this month disclosed a revised unsolicited takeover indication of interest from two private equity firms for $24 a share , up from a previous offer of $23.

Orthofix ( OFIX ) shares fell 1.5% on Friday, while SeaSpine ( SPNE ) rose 0.8%.

The PE firms behind the unsolicited bid may have seen an opportunity after Orthofix ( OFIX ) investors appeared to have disliked the idea of a merger with Seaspine. Orthofix shares plummeted 19% on Oct. 11 after the deal announcement was made.

Earlie this month a Stifel analyst said that he expected the merger would still likely be completed after the disclosure of the rival bid for Orthofix.

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