NAI ups offer for McAfee.com
Network Associates Inc blinked in its stand-off with McAfee.com yesterday, upping its offer for the company to a 20% premium over its current share price just as its previous offer was about to expire.
Santa Clara, California-based NAI's offer for the 25% of McAfee it does not already own now stands at $15.43 per share, based on NAI's share price on Monday, and consists of 0.675 of a Network Associates share plus $8 in cash.
NAI has also extended its tender period for the offer to September 12. Its previous, rejected offer of 0.9 NAI shares for each McAfee.com share was due to expire yesterday.
This is just the latest offer NAI has made for the outstanding shares of McAfee.com. Its original offer, made in March, was 0.675 NAI shares for each McAfee.com share. This was upped to 0.78 in April, an offer which was accepted by McAfee.com's board. However, this offer was dropped when NAI was being investigated by regulatory authorities. NAI made a fresh offer in early July of 0.78 of a share, before upping it to 0.90 of a share in mid-July due to the negative effect of share price fluctuations on its overall value.
However, the company insisted that this is the last time it will increase its offer. George Samenuk, NAI's chairman and CEO, said in a statement that the firm's directors "has determined that we will not accept further dilution or cash expenditure to complete this transaction." McAfee.com was not available for comment yesterday.