Tuesday, April 10, 2007

Nudge From Glenhill Advisors Prompts Action from TLC Vision (TLCV)

Glenhill Advisors activist target, TLC Vision (Nasdaq: TLCV), is 8.5% higher this morning after the company announced a modified "Dutch auction" tender offer to repurchase up to $125 million of its common stock at a price per share not less than $5.75 and not greater than $6.25 (up to 30% of outstanding stock). The repurchase will be financed through a combination of cash-on-hand and borrowing.

In March, Glenhill Advisors filled its original 13D and disclosed a letter sent to the Chairman expressing its concern about the company's underperformace. In April, an amended 13D from Glenhill Advisors noted they engaged in "consensual" discussions with certain senior executives and members of the Board of Directors of the Company.
Although Glenhill Advisors didn't get into great detail about the nature of the discussion, one would have to assume that today's announcement from TLC Vision is related the talks.
Glenhill paid on average in the high $4 per share range for its 13.9% stake in TLC Vision. Currently the stock is trading at $5.85.

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