Network Associates on-off bid for the 25 per cent of shares in McAfee.com it doesn't already own looks to be nearing completion after McAfee.com's board recommended its approval.

Shareholders in NAI's partially owned consumer ASP subsidiary are been offered $8.00 in cash plus 0.675 of a share of NAI common stock in exchange for each of their shares. This represents $17.86 per share (based on closing prices of August 21), or an increase of 81 per cent over NAI's original offer in March of $9.86 per share.

But before any champagne corks get popped its worth reflecting that we've reached the stage of an offer been accepted by McAfee.com's board before. In April, an improved offer by NAI was accepted only for the offer to be dropped after it emerged that regulatory authorities were investigating NAI.

Network Associates launched a fresh bid to acquire the remaining stake in McAfee.com in July which, even on improved terms, was rejected by 96 per cent of McAfee.com shareholders earlier this month.

NAI's improved and "final" offer has now been put back to the vote and it remains to be seen whether McAfee.com board's recommendation is enough to sway McAfee.com shareholders uncertain about the ongoing SEC investigation of Network Associates. ®

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McAfee.com recommends stockholders accept Network Associates' exchange offer and tender their shares

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