“Internet software provider Inprise Corp has been sued by
investor Management Insights Inc, which seeks to block a proposed
$1.07 billion merger with Corel Corp , calling it inadequate.”
“The lawsuit claims Inprise directors had a fiduciary duty to
withdraw from the merger when they learned that Corel’s Securities
and Exchange Commission filings allegedly contained “material
misstatements and omissions and…did not fairly present Corel’s
results of operations and cash flows.””
“Also, while Corel’s sales of the Linux computer operating
system were an inducement for the merger, first quarter 2000
revenues for Linux sales were “disappointing” with annual revenues
not expected to meet projections, court papers say. Linux is
considered a potential rival to Microsoft Corp”