When Alcon Inc. (ALC) bumped its acquisition price for STAAR Surgical Company (STAA) to $30.75 per share this week, it probably expected some applause. Instead, it got a resounding rejection from the company's largest investors.
Yunqi Capital Limited, which holds a 5.1% stake in STAAR Surgical, issued a letter to shareholders on Wednesday making its position crystal clear. Following the close of STAAR's 30-day go-shop period and Alcon's revised offer, Yunqi reiterated its firm opposition to the entire deal.
Here's the backstory: Back in August, eye care giant Alcon agreed to acquire STAAR Surgical, the manufacturer of implantable collamer lenses, for a total equity value of approximately $1.5 billion. On Tuesday, Alcon amended those terms to $30.75 per share in cash—an increase representing roughly $150 million in additional equity value. That brings the total transaction to approximately $1.6 billion.
Sounds better, right? Not according to STAAR's major shareholders.
A Process Designed for One Winner
Broadwood Partners, which owns a massive 30.2% stake in STAAR, has been vocal in opposing the proposed sale. On Tuesday, the firm argued that the latest price increase actually highlights how deeply flawed the original sale process was and how it failed to maximize shareholder value. The new price, Broadwood notes, remains roughly half of what Alcon offered twice in 2024, even though STAAR's projections haven't materially changed.
On Wednesday, Yunqi Capital went further: "We strongly believe that it is still not the right time to sell the Company – regardless of the outcome of the go-shop period."
The letter details what Yunqi sees as a fundamentally broken process. The go-shop period was structured in a way that favored Alcon from the start, making it unlikely to attract competing bidders. The company's disclosures lacked transparency, further eroding confidence.
Consider the mechanics: A 30-day go-shop is barely enough time to conduct a serious market check for a global medical device company with complex regulatory requirements and manufacturing operations. Add provisions requiring that all bidder information be shared with Alcon, and giving Alcon days to review any superior bid, and you've effectively discouraged alternative buyers from even trying.
Where Were the Other Bidders?
The execution raised even more eyebrows. STAAR says it contacted 21 parties during the go-shop period. Yet Yunqi Capital argues the pool of potentially interested strategic and financial buyers is significantly larger than that.
Only two parties signed non-disclosure agreements. According to Broadwood Partners, at least one credible bidder was asked to accept a multi-year standstill agreement just to access due diligence materials. Those kinds of restrictions tend to send potential buyers running for the exits.
Yunqi Capital also rejects the notion that the revised $30.75 price represents compelling value. The firm argues that STAAR's current headwinds are cyclical, not structural—something the company itself has repeatedly emphasized. Short-term price averages don't capture the company's long-term growth trajectory, Yunqi says.
The situation puts STAAR Surgical in an awkward spot. With shareholders representing over 35% of the company openly opposing the deal, completing this transaction just got a lot more complicated. STAAR shares were down 5.65% at $23.95 at the time of publication on Wednesday.