Reuters' Tibco Unit Valued at as Much as $638 Mln in SEC Filing
Bloomberg News
June 21, 1999, 3:06 a.m. PT
London, June 21 (Bloomberg) -- Reuters Group Plc's Tibco Software Inc. unit is estimated to be worth as much as $638 million in an amended initial public offering filing with the U.S. Securities and Exchange Commission.
The filing said it plans to sell as many as 7.3 million new shares, out of a total of 58 million shares, for an estimated $9 to $11 a share, Adrian Duffield, company spokesman, said.
Reuters, which owns a majority of Tibco, will continue to own about half the unit after the IPO on Nasdaq, Duffield said.
Reuters, the world's biggest financial information provider, bought Palo Alto-based Tibco, which makes software that links companies' internal operations with their partners and customers, for $125 million in 1994. Analysts have credited the growing value of Reuters' investments in technology and Internet companies for helping its share price rise from 418.5 pence in mid-October to 899.5 pence ($14.35) today.
Tibco, in which Cisco Systems Inc. also owns a stake, said in a preliminary SEC filing May 11 that it will use the share sale to recruit and keep software engineers and possibly to help buy or invest in related services, products or technologies.
Goldman, Sachs & Co. leads a group of investment banks for the share sale that includes Bear, Stearns & Co. and BT Alex. Brown.
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