The reason he wants to do this is because HLS are at a financial crisis point. Their revenues are significantly down after losing customers and the effects of the recession, and the company themselves say they at high risk from being delisted from the NYSE - this is primarily due to SHAC's successful shareholder and NYSE campaign. HLS are struggling to keep up with loan repayments and this is now the last resort for them to save the company.

No other company is interested in buying HLS, merging, or helping them out in anyway - infact because HLS share value dropped and their financials declined so much their financial advisor resigned in February 2009 because he feared that a going private transaction (like the Baker deal) would make his involvement public knowledge and feared increased publicity and scrutiny. HLS have had to go to great lengths to fill his position as many did not want the attention of animal rights activists.

Read our page on the very telling Plymouth Report for more information about this and HLS's dire situation.

HLS' board of directors considered Baker's offer, negotiated and agreed a deal of $8.50 per share in July 2009. This buy out is not yet set in stone, as it will now go to the rest of the shareholders who have to vote on whether to accept the offer - we already know that shareholders are not happy and three class action lawsuits have been launched by lawfirms on behalf of shareholders who will lose out with the Baker deal.

There are some interesting blogs on the New York Times website regarding the buy-out:

Behind the Deal: Life Sciences  http://dealbook.blogs.nytimes.com/2009/08/12/behind-the-deal-life-sciences/
Small Deals, Big Issues  http://dealbook.blogs.nytimes.com/2009/07/13/small-deals-big-issues/