Openwave rejects Harbinger, plans on stand-alone recuperation

Shares of Openwave Systems Inc. tumbled in after-hours trading after the company rejected a takeover bid by Harbinger Capital Partners.
Harbinger, which is already Openwave’s second-largest shareholder, two weeks ago offered to buy an additional 40 million shares in a move that would give it 62% of the company’s outstanding shares. The investment firm had hoped to merge the company with privately held BridgePort Networks and install BridgePort chief Mike Mulica as CEO.
But Openwave’s board unanimously rejected the offer, claiming the proposed buyout was “inadequate and not in the best interests of all Openwave stockholders.” The rejection signaled an apparent end to Openwave’s effort to find a buyer.
“The board believes that implementation of Openwave’s stand-alone plan will generate greater value for stockholders than Harbinger’s offer, but remains open to considering any full and fair offer to all stockholders,” the company said in a public statement. “Accordingly, the board has directed management to focus its energies on implantation of the company’s stand-alone plan.”
Shares of Openwave plunged more than 13% following the news, which was released following the closing bell. The stock lost $1.37, or more than 13%, to settle at $9 a share.