Harvard Bioscience gets buyout offer

Skystone Advisors LLC has offered to buy out scientific instruments maker Harvard Bioscience Inc. for $5 per share in cash, according to a Securities and Exchange Commission filing today.

Skystone's funds currently own about 15.4 percent of the Holliston, Mass.-based company's shares.

In a letter to Harvard Bioscience's board sent Dec. 12 and filed with the SEC, Skystone said it believes its offer represents "a superior financial alternative" for shareholders.

"In order for the company to begin to realize its potential, we believe the company needs to execute a plan to roughly double its revenue and pretax profits within the next three years," wrote Kerry Nelson, Skystone's managing member.

The company can achieve this only through aggressive acquisitions, Nelson continued. There is significant risk to executing this acquisition strategy while trying to meet the requirements of being a public company, the letter said.

Skystone said the company's planned buyback of up to $10 million of stock, announced Dec. 6, will only increase the liquidity problem.

Skystone, which has been an investor since September 2005, said it may consider raising the offer price following due diligence of the company.

Harvard Bioscience shares jumped 21 cents, or 4.9 percent, to $4.47 in midday trading. Shares have traded between $3.62 and $6.18 in the past 12 months. (AP)