Globe says Nordion evaluating opportunities
2013-10-29 05:40 ET - In the News
The Globe and Mail reports in its Tuesday, Oct. 29, edition that a strategic review at Nordion ($8.58) could see it sell off some or all of its operations, buy a new business, or continue as a going concern. The Globe's Richard Blackwell writes that Nordion stock is up almost 35 per cent over the past year. Nordion has two core businesses: selling systems that use radiation to sterilize medical devices and foods, and the processing of medical isotopes for the diagnosis and treatment of diseases. Until last year Nordion was, for investors, a solid dividend play with a yield of about 4 per cent. Then, in September, 2012, it lost a crucial arbitration case against AECL, which still supplies it with isotopes. After losing the case, Nordion cancelled its dividend, and the stock plunged by more than 33 per cent. Since then, however, Nordion has cleaned up many of its legal issues -- including settling its disputes with AECL. Nordion launched its "review of strategic alternatives" in January. The stock responded, moving from about $6 after the arbitration ruling to more than $8.50 today. Chief executive officer Steve West coyly says Nordion continues "to evaluate opportunities