LAGUNA HILLS — A Texas holding company has acquired a 6.3% stake in SysteMed Inc. in recent months, in what could become another hostile takeover attempt on an Orange County firm.
Officials at National Intergroup in Carrollton, Tex., would not comment on the acquisition of SysteMed stock by its unit, NII Health Care Corp., over the last two months.
But in a filing with the Securities and Exchange Commission, NII Health said that it bought SysteMed stock because it thinks the drug distribution company is undervalued. SysteMed has traded at about five times its book value per share so far this year.
NII Health may "determine to seek control of" SysteMed, according to the filing. NII Health also said it might explore a merger, business combination or buying additional shares before making any decision to seek control.
SysteMed officials were traveling Friday and could not be reached for comment. The company, based in Laguna Hills, has 15 employees in its local office and about 450 overall.
Another Orange County medical benefits company, US Facilities Corp. in Costa Mesa, also faces a hostile takeover bid; its suitor is Fidelity National Financial Inc. in Irvine. US Facilities won a legal battle last month when a Delaware court overturned the election of two directors nominated by Fidelity.
SysteMed provides drugs to consumers and manages prescription drug benefits for corporations and insurers. Its mail-service network serves about 30,000 retail pharmacies.
SysteMed had revenue of $134.2 million in 1993, up from $117.5 million in 1992 and $89.9 million in 1991.
Reacting to the news, SysteMed's stock rose 50 cents to $7.19 on Nasdaq, while shares of National Intergroup added 12.5 cents each to close at $18.375 in the NYSE.