Nordion plunges after losing arbitration case
NEW YORK (AP) — Shares of Nordion fell to their lowest point in more than three years on Monday after the provider of radioactive material used to sterilize medical devices suspended its quarterly dividend following an unfavorable ruling in an arbitration hearing.
The Canadian company had wanted Atomic Energy of Canada Ltd. to pay monetary damages or finish building new nuclear reactors to replace the existing National Research Universal reactor.
"We intend to fully examine the implications of the decision and assess options for our future courses of action regarding this matter and long-term supply," Nordion CEO Steve West said in a statement.
Nordion has three months to appeal the arbitration decision.
In addition to suspending its dividend, Nordion said that it will stop buying back shares once it completes or cancels its existing repurchase program.
Nordion's stock dropped $3.95, or 37 percent to $6.70 in late morning trading. Earlier in the session, the shares hit $5.51, their lowest point since June 2009.