Components | September 27, 2011

Mosaid: 'Don't tender to inadequate Wi-LAN takeover bid'

Mosaid Technologies urges shareholders not to tender their shares to Wi-LAN's 'inadequate' takeover bid.
"We are actively exploring and evaluating a broad range of potential value-enhancing alternatives," said Carl Schlachte, Chairman of the Board and Special Committee of MOSAID. "With 90.3% of the vote in favour, our shareholders overwhelmingly approved our shareholder rights plan last Thursday with a view to giving us more time to continue in this process. We urge shareholders not to cut this process short by tendering to Wi-LAN's inadequate bid."

"Among the many reasons to reject Wi-LAN's offer are its clear inadequacy and its highly opportunistic timing and terms. By keeping its bid open for just 36 days and commencing in late August, Wi-LAN has opportunistically compressed the time frame in which Mosaid, its shareholders and other interested parties might consider alternatives."
The Special Committee reiterates its belief that shareholders can realize substantial shareholder value, in excess of Wi-LAN's offer, through the broad range of options that it is exploring. Mosaid and its financial advisors are in discussions with a significant number of parties with respect to these options.

Mosaid has entered into confidentiality and standstill agreements with many of these parties who, as part of their diligence, have been having discussions with management and examining the confidential information in Mosaid's data room.

Although it is impossible to predict whether any transactions will emerge from this process, the Special Committee is encouraged by its progress to date. It will still take time, however, to determine which option is best for Mosaid and its shareholders, and to then execute on that option.
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