Fonar rejects acquisition bid

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Fonar fends off bids for its Upright-MRI business. Image Source: Fonar  

Fonar, a Melville, N.Y.-based manufacturer of medical imaging equipment, has rejected a bid to be acquired by a California-based mortgage bank.

Fonar said that it is "not interested in entering into a merger or other agreement with Diversified Lending Group, whereby Diversified would acquire all of the stock of Fonar."

Diversified Lending, of Sherman Oaks, Calif., had made two offers of $5 a share for the company with no response. The bank has said that if it does not receive an "acceptable response" from Fonar, it would "consider all appropriate alternatives."
The same day as Diversified’s offer, Fonar reported a wider net loss in its fiscal first quarter, which ended Sept. 30. Sales in the latest quarter declined 22 percent, to $6.8 million.

The company’s stock, trading below $1 for months, soared after the offer became public Nov. 14, rising more than 100 percent, to close at $1.51. Shares continued to rise on Nov. 17, up 25 cents, to close at $1.81. They fell back to $1.35 at the end of trading on Nov.19. Shares are off 65 percent this year and Fonar has been notified that it may be delisted from the Nasdaq exchange, reported Newsday.