TIBCO Software to offer shares to Yahoo!, Sun
WASHINGTON, July 7 (Reuters) - TIBCO Software Inc., whose products enable computer applications to communicate efficiently across the Internet and other networks, said on Wednesday it will offer common shares to Yahoo! Inc. (Nasdaq:YHOO - news) and Sun Microsystems Inc. (Nasdaq:SUNW - news) to enhance its strategic relationships.
TIBCO Software, based in Palo Alto, Calif., is offering directly to Yahoo $4 million worth of its common stock and 500,000 shares to Sun, the company said in a U.S. Securities and Exchange Commission filing.
The offerings are being made concurrently with TIBCO Software's already announced initial public offering (IPO).
The sales are being made to further strategic relationships with Yahoo and Sun, who have said they intend to buy the shares but are not obligated to do so, TIBCO Software said in the filing.
The sale to the two companies would be made at the initial public offering price in non-underwritten transactions, TIBCO Software said.
The company plans an IPO of 7.3 million common shares that may be priced in the $9-11 per share range, and the shares will be listed on Nasdaq under the symbol (Nasdaq:TIBX - news), according to the SEC filing.
The IPO is expected to begin trading around July 14, according to the lead underwriter, Goldman Sachs & Co. The other underwriters are Bear Stearns & Co. Inc. and Deutsche Banc Alex. Brown.
If there is strong demand for the 7.3 million shares, the underwriters have an option to buy 1,095,000 more shares from TIBCO Software at the initial public offering price.
The company plans to use the net proceeds for general corporate purposes, including working capital and capital expenditures, and for potential investments in and acquisitions of complementary technologies, the filing said.
The company's products are currently in use by more than 300 companies such as 3Com Corp. (Nasdaq:COMS - news), Goldman Sachs Group Inc. (NYSE:GS - news), Yahoo and Motorola Inc. (NYSE:MOT - news).
TIBCO Software is a unit of London-based Reuters Group Plc (quote from Yahoo! UK & Ireland: RTR.L) (Nasdaq:RTRSY - news), the global news and information provider, which will continue to hold a majority equity interest in TIBCO Software following the offerings, the filing said.......http://biz.yahoo.com/rf/990707/0b.html |
