STAAR Surgical Company (NASDAQ: STAA) experienced a 5.5% share decline on December 10, 2025, as Hong Kong-based institutional investor Yunqi Capital reiterated its opposition to the $1.6 billion all-cash acquisition proposal from Alcon AG (NYSE: ALC). The renewed dissent comes just nine days before a pivotal shareholder vote on December 19, intensifying the pressure on STAAR’s divestment plans amid a contested takeover battle.

Shareholder Opposition Centers on Divestment Timing and Process Integrity

Yunqi Capital, which holds a 5.1% stake in STAAR Surgical, aligned its stance with Broadwood Partners, the company’s largest shareholder with 30.2% ownership, both asserting that the divestment attempt is premature. Christopher M. Wang, Yunqi’s Founder and Chief Investment Officer, emphasized that STAAR is undergoing a strategic rebound, with recent operational improvements and the normalization of excess distributor inventory in its key Chinese market. He argued that recent setbacks represent temporary headwinds rather than fundamental flaws, indicating that the company is regaining momentum just as the sale process is underway.

Yunqi criticized the recently completed 30-day “go-shop” period, intended to invite alternative bids, describing it as too brief and restrictive. The investor pointed to provisions such as Alcon’s right to evaluate competing offers for four days after the go-shop ended. Moreover, multi-year standstills embedded in non-disclosure agreements deterred other bidders, raising concerns over transparency and fairness. These factors collectively led Yunqi to argue that the divestment process was “structured to seal the Alcon deal, not to maximize value for shareholders.”

Alcon’s Enhanced Offer Fails to Garner Broad Shareholder Support

Despite Alcon’s increased offer of $30.75 per share, up from $28, which represents a 74% premium over STAAR’s 90-day volume-weighted average price, both Yunqi and Broadwood dismissed the revised proposal as insufficient. Prior to the hike, reports suggested that 72% of shareholders opposed the original offer, leading to multiple delays in the voting schedule. Broadwood condemned the price increase as evidence of a “fundamentally broken” sale process.

STAAR’s board continues to back the enhanced bid, describing it as “best and final.” They highlighted the unsuccessful go-shop as confirmation that no better offers were forthcoming. Alcon CEO David Endicott underscored the bid’s certainty, positioning it as a choice between a “substantial and certain premium” and an uncertain future under activist shareholders.

Analysts remain cautiously optimistic that the sweeter deal, combined with reductions in previously criticized executive compensation packages, may influence institutional investors. Proxy advisory firms ISS, Glass Lewis, and Egan-Jones, which initially recommended voting against the deal, are expected to update their guidance ahead of the vote, potentially proving decisive.

Divestment: Market Outlook

With more than one-third of outstanding shares controlled by dissenting investors, STAAR Surgical’s divestment remains highly contested. The imminent vote on December 19 will profoundly impact the company’s trajectory and may set precedent for shareholder dynamics in contested mergers within the medical device sector. The ongoing resistance underscores the complexities firms face when navigating divestment strategies under shareholder scrutiny.