Globe and Mail: Corel shares tumble to 5-month low

[ Thanks to Kevin
for this link. ]

“The decline came as an investment banking firm continues to
evaluate the fairness of its all-stock offer for Inprise Corp.
Corel’s tanking stock value prompted Inprise to order a second
fairness study on the planned $1.1-billion (U.S.) merger late last

“Poor first-quarter results and a surprise warning that Corel
could run out of cash by July have caused the Ottawa-based software
company’s stock to drop more than 60 per cent since the deal was
announced on Feb. 7 — when Corel’s shares traded at $27.90
(Canadian) on the Toronto Stock Exchange.”

“It sounds like the Inprise management would at least like to
renegotiate the terms,” said Jean Orr, analyst at Bluestone Capital
Partners of New York. A new fairness opinion could give
disaffected Inprise shareholders leverage by forcing Corel to
sweeten the deal — or persuade investors to vote it

Complete Story

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