Feeds

Corel shareholders rebel

Just say 'no' to takeover

  • alert
  • submit to reddit

The essential guide to IT transformation

Corel Corporation shareholders are revolting. They say the struggling software company has sold them down the river by agreeing to flog the business for a bargain basement price.

Rebel shareholders have set up a Web site, corelrescue.com, to help railroad this "unfair takeover offer".

Earlier this month, directors of Corel - known for a number of software packages including WordPerfect Office, the CorelDraw Suite and Corel Painter - announced they had accepted a takeover bid by San Francisco-based venture capital firm, Vector Capital.

At the time James Baillie, Corel chairman, said the deal was an "opportunity for the shareholders of Corel to realise the value of their shareholdings" and the takeover was in the "best interests of the company and its shareholders".

The rebel shareholders don't see it this way. They're fuming because the deal values their shares at an "unacceptably low price of just $1.05 per share" (US$97.6m in cash).

In a statement rebels said: "This offer by the Vector Capital…is far too low to be seriously considered. Under the presented scheme, Corel's great line-up of award-winning products…would be virtually given away for free."

They claim the company has "very large cash reserves" and following a recent round of redundancies and other restructuring now has spending under control.

"We shareholders would rather not sell at the bottom of the currently depressed market, but instead want to be able to reap the benefits as we patiently wait for Corel's three-year turnaround plan to fully unfold over the next year or two," they said.

"We appeal to Corel's management and the board of directors, who are hired to look after shareholders' best interests, to scrap this extremely unfair takeover offer and to continue working together with the shareholders towards renewed profitability and the release of Corel's upcoming new enterprise products."

The proposed takeover still needs to be given the green light by the courts and shareholders. ®

Related Story

Corel cuts staff in bid for profitability

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?