CorelCorp.’s majority shareholder, San Francisco-based Vector Capital Corp.,has pulled out of its $87 million to buy the rest of the Ottawa-basedsoftware company.
VectorCapital said Monday it has removed its bid “in the interest offacilitating Corel’s pursuit of these third-party strategicalternatives.”
Theprivate-equity currently owns approximately 69 per cent of theoutstanding shares of Corel, and had offered $11 a share in cash topurchase the remaining shares in the company. Speculation suggests thatCorel’s tumbling stock price, which traded at $9.44 on Friday, mighthave caused Vector to back down from the offer.
Thedeal would have allowed Vector to assume complete ownership of Corelfor the first time since it initially privatized the software vendorback in 2003. At that time, Vector paid $98 million for ownership ofCorel, but then returned the company to public trading after its 2006stock sale.