National Medical Enterprises says it plans to exercise warrants to buy 6 million shares of Hillhaven Corp. common stock. The Santa Monica, Calif.-based hospital chain said it intends to pay for the warrants by tendering $63.3 million in Hillhaven preferred stock it currently owns. NME retained the warrants in 1990 when it spun off Hillhaven, a Tacoma, Wash.-based chain of more than 400 nursing homes, retirement centers and pharmacy outlets in 38 states. Hillhaven's shares are traded on the New York Stock Exchange.
Owen Healthcare will pay about $20 million in cash and stock to acquire Meditrol, a Rapid City, S.D.-based maker of automated drug-distribution systems. Houston-based Owen manages more than 250 hospital pharmacies. It expects to complete the transaction by April. As part of the deal, Owen will issue 750,000 shares at $15 per share in its first foray into the stock market. Company executives anticipate an initial public offering this summer, said Steve Drury, Owen's executive vice president. The company now has tabled development of its Argus automated drug-delivery system, Mr. Drury said. Instead, it plans to rename and reconfigure Meditrol's product.
Seragen said it will raise up to $9 million in a private placement with investors of 1.1 million shares of stock and 275,000 warrants. The Hopkinton, Mass.-based, publicly traded company is developing "fusion toxin" technologies. In fusion toxin therapy, genetically altered hormones or growth factors seek out and attack disease-causing cells. Seragen will use the proceeds to support clinical trials of its products.