Harbinger gives up on Openwave

Shares of Openwave Systems Inc. continued to slide after Harbinger Capital Partners Master Fund withdrew its offer to buy a majority stake in the company.
Already Openwave’s second-largest shareholder, Harbinger earlier this month offered to buy an additional 49% of the software developer at $8.30 per share. But only 40% of outstanding Openwave shares were tendered, Harbinger said, and the proposed deal expired overnight.
Harbinger said it will not extend the offer, and said earlier this week it may sell its existing shares should the deal fall through.
“This was an insufficient number of shares to meet the minim condition set forth in Harbinger’s tender offer documents,” the hedge fund said. “In addition, Openwave’s board didn’t take the necessary action to satisfy those conditions to the tender offer which were in its exclusive control.”
While not unexpected-Openwave’s board unanimously rejected the proposal several weeks ago and chose to abort efforts to find a buyer-the news rattled investors. Shares of Openwave sank 46 cents, or nearly 7%, settling at $6.55 by midday.
Meanwhile, the Redwood City, Calif.-based firm continues to try to right the ship. Openwave recently lost Senior VP Martin Dunsby, a key executive who left to head a mobile gaming startup; the company also is working to slash 20% of its workforce by the end of the month.