OpenTV Weighing Kudelski's Takeover Bid
Offers Deal Worth $127 Million For Interactive TV Firm
Todd Spangler -- Multichannel News, 2/27/2009 3:53:29 PM
Interactive TV developer OpenTV said Friday its board of directors will consider a non-binding proposal from Kudelski SA to acquire all of the ordinary shares of OpenTV not currently owned by Kudelski or its affiliates, in a deal that would be worth some $127 million.
In October 2006, John Malone's Liberty Group sold control of OpenTV to Switzerland-based Kudelski for about $132 million. Kudelski currently owns about 26.7% of the economic interest and 74.7% of the voting rights to OpenTV.
Kudelski on Thursday proposed to buy the rest of OpenTV's shares at $1.35 per share in cash, representing a 35% premium to OpenTV's closing share price on Feb. 26.
In mid-afternoon trading Friday, OpenTV's stock was up 18%, to about $1.18 per share.
Kudelski in a statement said the acquisition "would provide better integrated industry-leading end-to-end solutions and services to the customers. Such integration is growing increasingly critical for addressing customer needs. Efforts to improve efficiencies and service delivery are vital to both the Kudelski Group and OpenTV in today's economic environment."
For example, Kudelski said the transaction would allow it to position OpenTV in new markets - such as IPTV - and enhance products through joint ventures.
Kudelski added that it "has no intention of disposing of our controlling equity stake in OpenTV under any scenario."
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