Zeev's Turnips Patch-No Politics (ZEEV)

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CYBX 36.55 Part of the reason for it falling today.

02/15/2005
Dow Jones News Services
(Copyright © 2005 Dow Jones & Company, Inc.)



WASHINGTON (Dow Jones)--Medical device company Advanced Neuromodulation Systems Inc. (ANSI) reported Tuesday cutting its stake in Cyberonics Inc. (CYBX) and said it may sell more shares.

In a regulatory filing, Advanced Neuromodulation said it continues to believe that a tie-up of the companies "could create significant synergies in technology development, manufacturing, sales and marketing, regulatory, administrative and other areas." Advanced Neuromodulation previously has floated the idea of a business combination with Houston-based Cyberonics, but had been rebuffed.

Plano, Texas-based Advanced Neuromodulation, which reported holding a 13.2% stake, or 3.15 million common shares, in Cyberonics, said it sold 347,000 shares Monday in part in response to Cyberonics share-price appreciation and the company's prior refusal to discuss a business combination.

Cyberonics shares rose recently on prospects of a product's use to treat depression, but they have retreated this week.

Shares of Cyberonics closed trading Tuesday at $37.40, down $2.54, or 6.36%.

Advanced Neuromodulation reported last summer a 14.87% stake in Cyberonics, with beneficial ownership of 3.5 million shares.

-By Shira Ovide, Dow Jones Newswires; 202-862-1356; [e-mail]