A company headed by a former chief executive has dropped it takeover offer for Northstar Healthcare Inc. (TSX:NHC) due to a "material adverse change" in the ambulatory surgery provider's financial condition.
Donald Kramer had said he would form a new company, Canada Healthcare Acquisition Inc., to make a cash offer of 95 cents per share for Northstar.
However, Canada Healthcare Acquisition said Monday that it had abandoned its bid despite the fact that 59 per cent of Northstar's shares had been tendered to the offer.
"Several other conditions to the offer were not satisfied including the occurrence, subsequent to commencement of the offer, of a material adverse change in Northstar's financial condition," the company said in a statement.
Kramer resigned as CEO in September of 2008.
Northstar shares were down three cents at 90 cents on the Toronto Stock Exchange on Monday.