Private equity firm Vector Capital's bid to privatize Ottawa's Corel Corp. has fallen through.
The software maker announced that Corel Holdings L.P. (CHLP), an affiliate of Vector Capital, was withdrawing its previously announced proposal to acquire those shares of Corel not owned by CHLP for $11 in cash.
CHLP currently owns approximately 69 per cent of Corel's outstanding shares.
The company said the withdrawal would "facilitate pursuit by Corel of alternatives for maximizing value for all of Corel's shareholders."
The CHLP bid, which was announced at the end of March, has been criticized by analysts as being too low. If the deal had gone through, it would have been the second privatization of Corel by Vector.
Corel also said it was disbanding the special committee responsible for identifying potential strategic alternatives besides the CHLP proposal, with the board of directors now taking over the evaluation of the company's options.
Both Corel and Vector Capital indicated they would not be providing further comment on the matter when contacted.
Shares of Corel gained to a high of $9.57 on the Toronto Stock Exchange following the news, up 30 cents from the opening bell.
For more information about Vector's privatization offer for Corel, click on the following links:
Corel gets buyout proposal from majority shareholder
Vector's Corel bid too low: analysts
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