Cyberguard Corp has decided not to pursue its unsolicited takeover bid for rival firewall maker Secure Computing Corp, some weeks after Secure’s board rejected the company’s all-share merger offer as inadequate.
Cyberguard had planned to raise some cash to sweeten the deal for investors. CEO Pat Clawson told Reuters yesterday that a recent drop in Cyberguard’s share price made raising cash through the markets a less attractive proposition.
Cyberguard CFO Mike Matte told ComputerWire: Market conditions changed, we decided we need to focus on what we do best. Secure did not appear to be interested in the merger, he said.
The firm had sold the merger idea on the idea that both Cyberguard and Secure are building the same company with their combinations of firewall, access control and content filtering systems.