Feeds

Corel shareholders rebel

Just say 'no' to takeover

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.