The fate of Ottawa-based software maker Corel Corp. will be decided by its shareholders next month in Toronto, as the Ontario Superior Court of Justice has granted an interim order to vote on Vector Capital Corp.’s proposed bid to acquire the company’s common shares.
At a special meeting, Corel’s shareholders will vote whether to accept Vector’s US$1.05 offer for the remaining 22,890,000 shares in the company. The meeting will be held on Aug. 20, 2003 at the Holiday Inn in Toronto. The vote is crucial for Corel because it first needs approval from its shareholders before the court will approve the deal.
San Francisco-based Vector Capital first announced its intentions to buy Corel back in March but the deal wasn’t complete until June, when Corel’s board of directors agreed to the asking price. Shortly after, a group of shareholders stepped in and requested the acquisition be halted, enabling the opportunity to block the deal in court.
Derek Burney, president and CEO for Corel said accepting Vector’s bid is the best decision for the company.
“We believe Vector’s involvement in the company will put Corel in a stronger position over the longer term, making us better able to compete in increasingly challenging markets,” he said in a statement issued by the company.
CIBC World Markets Inc. and KPMG LLP, retained by Corel to review Vector’s bid and explore other offers, said the offer of US$1.05 is fair.