STAAR Surgical (NASDAQ: STAA) saw its stock plummet 5.07% in Friday's trading session following the announcement of significant amendments to its merger agreement with Alcon Inc. The changes introduce a 30-day "go-shop" period, potentially opening the door for alternative acquisition proposals and creating uncertainty around the previously announced deal.
The amended agreement includes several key provisions that have sparked investor concern: 1. A new 30-day go-shop period allowing STAAR to actively solicit third-party proposals through December 6, 2025. 2. Alcon has waived all matching rights for third-party proposals. 3. STAAR is not required to pay a termination fee if it accepts a superior proposal from a qualified bidder. 4. The special meeting of stockholders to vote on the merger has been postponed to December 19, 2025.
STAAR Surgical's CEO, Stephen Farrell, emphasized the company's commitment to maximizing stockholder value, stating, "This go-shop process will either produce a superior proposal or it will validate the merits of our proposed merger with Alcon. Either way, STAAR stockholders win." However, the market's immediate reaction suggests that investors are concerned about the potential for the Alcon deal to fall through or be renegotiated, leading to today's significant stock price decline.