Linux Today: Linux News On Internet Time.

More on LinuxToday

CNET News.com/Reuters: Doubts mount about Corel's Inprise/Borland deal

May 04, 2000, 16:49 (0 Talkback[s])


Desktop-as-a-Service Designed for Any Cloud ? Nutanix Frame

"Canadian software maker Corel's all-stock acquisition of Inprise/Borland is showing more signs it could be in deep trouble, analysts say. The merger has come under increasing shareholder criticism because its value, which is tied to Corel's stock price on Nasdaq, has sunk 65 percent since the deal was announced in February--from $1.07 billion to $374 million today."

"If Inprise/Borland kills the deal, it faces a $29.5 million walk-away fee, but if shareholders vote down the deal there is no penalty. "I would guess that there is a less than 50 percent probability the deal will go through," said Duncan Stewart, fund manager at Tera Capital Corp."

"People are saying 'Oh God, this is nowhere near the company we thought we were getting.' What would help is if (Corel) had real revenues...growth on the Linux side, less erosion of the existing businesses."

Complete Story

Related Stories: