Endologix turns down Elliott Associates' $2.25-per-share offer

By Lisa Kerner

Charlotte, N.C., Nov. 13 - Endologix, Inc.'s board of directors will not pursue the Oct. 13 unsolicited indication of interest from Elliott Associates, LP after deciding the proposal is not in the best interests of the company's shareholders.

Elliott Associates wanted to acquire 100% of the outstanding shares of Endologix for $2.25 cash per share using its own funds, it was previously reported.

"We appreciate the proposal from Elliott Associates and its long-term support of Endologix," president and chief executive officer John McDermott said in an Endologix news release.

"However, we believe that Elliott's proposed valuation does not reflect recent Food and Drug Administration product approvals, increasing gross margin and our expectation of achieving positive operating cash flow in the first half of 2009."

Endologix is an Irvine, Calif., company that develops minimally invasive treatments for vascular diseases.

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