“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.”
Web Webster has more than 20 years of writing and editorial experience in the tech sector. He’s written and edited news, demand generation, user-focused, and thought leadership content for business software solutions, consumer tech, and Linux Today, he edits and writes for a portfolio of tech industry news and analysis websites including webopedia.com, and DatabaseJournal.com.
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