Update 7/24: Let the talks begin… With the review of the Symphony bid now officially postponed, the door widens for what could be an interesting bidding war in the ECM market. Asking for at least 10 cents more per share than OpenText has offered, Hummingbird has rescheduled the Symphony bid review for August 18th while negotiations take place. Considering both suitors are shareholders, (OpenText’s 22.3% versus Symphony’s 18%) it is unlikely that either will back out without some amount of drama.
Update 7/13: According to a press release, the Hummingbird Board of Directors will not issue a recommendation on the OpenText bid before July 25. Until that time, it is advising Hummingbird shareholders to “take no action,” and support the Symphony acquisition. Interestingly, the review of the Symphony deal will take place July 21. We’ll keep you posted.
Clearly the door was open. Altough I called myself “stunned” that the bid for Hummingbird was not a technology to technology play, I remain so given that OpenText was not the player I thought “most likely to acquire.” In fact, it was no secret that OpenText was one of the players “most likely to be acquired!” I’m thinking the final yearbook for the class of 2006 may have more surprises.
The OpenText bid is a “lock-up” agreement, which according to Information World Review, means that Hummingbird shareholders agree to a deposit from OpenText and not to withdraw from the deal. (Subject to timing and regulatory compliance issues.)
Aside from the many debates to be had on the consolidation effect of this deal, Hummingbird shareholders and financial analysts must certainly be gratified at the 20% increase in the OpenText versus Symphony bids. More at Image and Data Manager Online, CMS Watch, and Bloomberg.
Whether this deal happens is still up for grabs. OpenText’s bid is due by the end of the week. We’ll keep you posted.