"As representatives of Corel (CORL) and Inprise/Borland (INPR)
took turns shoveling dirt over their ill-fated merger plans
yesterday, observers in the financial community didn't waste any
time with long-winded eulogies."
"It's completely obvious what happened," said Duncan
Stewart, technology analyst for Toronto-based Tera Capital. "The
deal was dead as soon as Corel's market share started dropping.
Once Inprise investors got wind of how bad the deal was, it was
only a matter of time."
"Indeed. What had begun on Feb. 7 as a potential $1.07 billion
deal to establish a Linux powerhouse had fallen below the $300
million mark less than 90 days later as Corel's prices evaporated
in the face of mounting financial troubles. Software maker Corel,
based in Ottawa, Canada, saw its stock slip from 20 before the deal
was struck on Feb. 7 to a close of 5 13/32 on Monday. In April,
Inprise executives, prodded by shareholders, announced a "fairness
audit" of the merger plans, setting in motion yesterday's
announcement. Inprise is based in Scotts Valley, Calif."
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