Mioracle

Status Report: LifeCell - Kinetic Concepts

This is a horrendous move from the standpoint of the KCI shareholder. There are very few cost synergies as I see it - and I am a physician who uses both products. The deal is partially funded by convertible debt, thus diluting shareholder value in both the short term - institutions often short the common when releasing debt in this form - and the long term as it caps the appreciation before the conversion kicks in.
All in all, a major mistake from an overpaid and inexperienced CEO, who still thinks it's the go-go 90's of healthcare.