NEW YORK Feb 13 Shares of Nordion Inc
should rise significantly following the
company's retention last month of an adviser to consider
strategic options, which could include selling all or part of
the life sciences company, a New York-based hedge fund manager
said on Wednesday.
"We think you are sitting at $7 today, and it should be at
$11 a share, and Jefferies is working hard to make that happen,"
Howard Shainker, who co-founded Bow Street Capital Management,
said at the Harbor Investment Conference.
Bow Street Capital holds shares in Nordion. Shainker said
the company was one of his best investment ideas, but he did not
specify the size of his holding.
Nordion last month hired Jefferies & Co to consider
The Canadian company has three main businesses but has been
battered since one of those was put in jeopardy after losing an
It suspended its dividend in September after an arbitration
panel rejected its claim for damages from state-owned Atomic
Energy of Canada Ltd, the main supplier for its medical isotopes
Nordion's New York-listed shares on Wednesday were trading
at $7.44. The shares had closed at $6.43 on Jan. 25, the last
trading day before Nordion disclosed it had retained Jefferies.
Nordion is one of the world's leading producers of
molybdenum-99, used in medical imaging, and it depends on raw
material from AECL's aging facility in Chalk River, Ontario.
Shainker, who launched Bow Street after leaving Daniel
Loeb's Third Point Capital, said he sees plenty of potential
buyers for pieces or even all of Nordion's businesses, which
include its sterilization business and a unit that specializes
in liver cancer treatments.
"There are lots of strategic buyers," he said at the
conference, where prominent hedge funds managers, including Bill
Ackman and Andrew Feldstein, presented some top ideas.
Shainker said any potential spin-offs or purchases of
Nordion assets might be initiated within six months.