Pivotal Corp. is recommending that shareholders reject the latest acquisitions offer from CDC Software, a subsidiary...
of Chinadotcom, and instead approve the company's original deal with a private equity firm.
On Friday, investors in the Vancouver, British Columbia-based midmarket CRM provider will vote on the deal that Pivotal agreed to last month -- to be acquired by Oak Investment Partners and then merged with e-service software firm Talisma Inc.
In a statement, the company said the CDC offer was "non-binding and highly conditional" and would hinge on "a number of events, consents and agreements" outside of Pivotal's control. It added that talks with CDC began in early 2003, stalled and then resumed in earnest last week.
The board of director's decision not to back the CDC proposal, which would have let shareholders choose between an all-cash or combination cash-and-stock settlement, is the second acquisition deal it has shot down in the last week. The board also rejected an all-stock deal from rival Onyx Software Corp.
Onyx issued a release early this morning that called its offer a "superior fit" for Pivotal.
Oak has proposed paying $48 million in cash for Pivotal. Under Canadian law, 75% must tender their shares for approval.