Shareholder rejects Openwave settlement

Openwave Systems Inc.’s proxy battle continued after the company failed to reach a settlement with its second-largest shareholder.
The wireless software developer said Harbinger Capital Partners rejected an offer that included a three-year board appointment for a Harbinger nominee in exchange for the shareholder dropping litigation against Openwave. The proposal also stipulated that both Openwave and Harbinger would release each other from all claims relating to the nomination and election of directors at the company’s 2006 annual meeting.
Harbinger is waging the proxy struggle over Openwave’s languishing stock, which is down more than 60 percent from its 52-week high of $23.19. Shares of Openwave were largely unchanged following the rejected settlement, climbing less than 1 percent to $8.92.