Thoratec Calls Off $282 Million Deal To Buy HeartWare On FTC Lawsuit

   DOW JONES NEWSWIRES 
 

Thoratec Corp. (THOR) said it ended its $282-million bid to acquire medical-device maker HeartWare International Inc. (HTWR) after the Federal Trade Commission said it would challenge the deal in court.

HeartWare's shares fell 4.9% to $21.60 in after-hours trading, while Thoratec's shares were inactive after closing at $25.14.

The FTC on Wednesday alleged that Thoratec's takeover of HeartWare would further the company's monopoly in the market for left ventrical devices, surgically implanted blood pumps that support and sustain patients suffering from end-stage heart failure.

Thoratec is the only company that has Food and Drug Administration approval to sell left ventrical devices. HeartWare is one of the few other makers of these devices.

Thoratec Chief Executive Gary F. Burbach said the company's management and board decided it was in the best long-term interests of the company and its shareholders not to pursue "what would likely be a protracted, costly and unpredictable litigation process."

HeartWare CEO Doug Godshall said his company agreed that litigation wasn't in the best interests of shareholders. "While we, too, are disappointed with the decision by the FTC, we are, nonetheless, excited about HeartWare's prospects going forward on a stand-alone basis," he said.

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; [e-mail]