REDWOOD CITY, Calif.-Wireless Internet software provider Openwave Systems Inc. announced it could further its acquisition push with a new offering of $100 million in convertible subordinated notes due 2008.
The company said it has no definite acquisition or investment plans. Openwave said it would primarily use the proceeds from the offering for additional working capital and other general corporate purposes.
Investors seemed to be cautious of the move, sending the company’s stock down in trading immediately after the news. Openwave’s stock recovered in trading later in the day to about $5.48 per share.
Openwave said it will use a portion of the net proceeds to purchase a portfolio of U.S. government securities that will be pledged to secure the payment of the first six scheduled interest payments on the notes.
