The Pivotal acquisition scrum has become very dirty, very quickly after it emerged the company had been in discussions with CDC, part of the chinadotcom [CHINA] group, and that CDC appears to be feeling hard done by.
Pivotal Corp [PVT.TO] has rejected CDC Software Corp’s offer having decided it is unlikely to result in a superior transaction to the Oak/Talisma offer that the board of directors continues to recommend shareholders accept.
Pivotal/CDC discussions started earlier this year, but did not go beyond the preliminary stages. Thereafter, Pivotal said that CDC indicated that it was not in a position to negotiate a merger or acquisition, but on November 14 it sent Pivotal a letter expressing its interest in opening discussions.
Pivotal obtained consent from Oak/Talisma to enter into discussions with CDC and a draft conditional proposal was considered but Pivotal did not consider that it constituted a superior offer to the existing Oak one.
The period for discussion came to a close without resolution after which it is believed CDC sent an unsolicited written communication indicating that its board had approved the execution and delivery of a non-binding letter of intent by CDC.
CDC’s version is that it was not invited to make an offer despite having made various efforts to do so, and that the conditions Pivotal refers to are necessary because Pivotal has been unable to provide it with due-diligence materials.
CDC also maintains that the majority of the other conditions are substantially the same as those set out in the Pivotal agreement with Oak/Talisma.
Meanwhile, Onyx Software Corp [ONXS] has not been deflected from its pursuit of Pivotal by the appearance of CDC’s bid, and maintains that its open proposal to acquire Pivotal remains superior to all public offers.
This article was based on material originally published by ComputerWire.