DrKoop.com won't pursue reverse stock split

DrKoop.com said Wednesday that it will no longer pursue a reverse stock split, a move that had the potential to boost its battered share price in hopes of avoiding Nasdaq delisting.

The ailing health care Web site said that it came to the conclusion it was best to cancel plans to pursue a proposed 10-to-1 reverse stock split after several objections from "significant" shareholders. Approval of the reverse split would have required nods from shareholders holding a majority of the company's outstanding common stock. The company said it now believed it wouldn't win the required approval.

DrKoop had expected to hold a special meeting of investors Jan. 25 to vote on whether it should implement the reverse stock split.

On Tuesday, DrKoop announced plans to close its Austin, Texas headquarters and lay off 45 employees. The layoffs marked continued attempts by the troubled company to turn a profit. The company said it will continue pursuing new business opportunities.