(Reuters) - Alere Inc’s ALR.N former Chief Executive Ron Zwanziger said he intends to take the diagnostic device and service provider private in a deal that values the company at $3.82 billion.
Zwanziger plans to offer $46 per share, a 25 percent premium to the stock’s Friday close.
Alere’s shares rose as much as 17 percent to $43 in early trading on Monday.
Zwanziger said he may raise the offer after a due diligence period. He plans to seek a month-long due diligence.
Zwanziger, who reported a 4.68 percent stake in the company as of Sept. 12, resigned in July.
The company in June put off plans to spin-off of its unit, BBI Diagnostics.
Zwanziger said in the regulatory filing on Monday that he had been discussing the prospect of making the offer with other shareholders over the past two months. (1.usa.gov/YLlnZP)
Alere’s shares were up 12.56 percent at $41.21 on the Nasdaq. They earlier touched a more than four-high of $43.
Up to Friday’s close of $36.61, the shares have lost about 7 percent of their value since Zwanziger resigned.
Reporting by Ankur Banerjee in Bangalore; Editing by Sriraj Kalluvila