Lawson Takes Infor Deal, Can’t Do Any Better
Expectations are the deal will close in Q3
By: Maureen O'Gara
May. 2, 2011 05:00 AM
Lawson Software suckered the punters who had bid its stock up over 13 bucks a share in the last six weeks in anticipation of a bidding war or a sweetener after privately held Infor - now run by former Oracle president Chuck Phillips - put $11.25 a share on the table late at night the Friday the earthquake and tsunami hit Japan.
This Tuesday Lawson accepted Infor's original $1.84 billion offer, forcing gamblers to dump their positions.
Lawson said in the announcement that it had "contacted other potential acquirers including competing global providers of enterprise applications and financial buyers, a process that did not result in a superior proposal."
So, figuring the proposed merger was "in the best interests of stockholders," the company signed a definitive agreement to be acquired by private equity house Golden Gate Capital, Infor's owner.
It said members of its board who own 9% of the enterprise ISV have agreed to vote their shares in favor of the deal.
Carl Icahn owns a nice piece of Lawson.
The price represents a premium of approximately 14% over Lawson's closing price on March 7, the day before Reuters reported it had hired Barclays Capital to assess its options, and it's 35% better than its average closing price during the year before that.
It also turns out that it signed an NDA with Infor on January 10 although it characterized Infor's March 11 bid as "unsolicited."
Expectations are the deal will close in Q3. Its stock closed Tuesday at $11.06, down more than a buck since Monday.
Details of Lawson's alternatives to follow in the proxy.
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