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Invitrogen stock tumbles
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July 10, 2000: 3:45 p.m. ET
Stock lose nearly 25 percent on fears that $1.9B deal will affect growth
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NEW YORK (CNNfn) - Shares of biotechnology firm Invitrogen lost nearly a quarter of their value Monday on investor fears that the company's recent $1.9 billion acquisition of Dexter Corp. and Life Technologies will slow company growth.
Invitrogen fell 18-3/16 to 58-15/16 in late afternoon trading, pushing the stock below the price protection mechanism, or collar, for the Dexter (DEX: Research, Estimates) and Life Technologies deal.
The collar guarantees a fixed value of $62.50 in cash and stock for Dexter and $60 per share for Life Technologies. If Invitrogen shares stay below $60, an exchange ratio of 1.0417 shares of Invitrogen will be used.
 Traders said the sell-off reflected concern that Invitrogen was using its high-multiple stock to buy a business with a slower growth rate.
"Invitrogen was a much higher growth story," one arbitrageur said, noting that with this large acquisition the company would be "saddling themselves with something with slower growth."
"I would chalk it up to 'high-flier buys assets,'" another arbitrageur said.
In addition, Invitrogen's stock also tended to be illiquid, which has contributed to its volatility, another trader said.
San Diego-based Invitrogen (IVGN: Research, Estimates) targeted Life Technologies because of work on enzymes and biochemicals to identify and manipulate genetic material.
Shares of Dexter rose 4-1/8 to 52-1/8. 
-- from staff and wire reports
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