Wednesday, August 25, 1999
Technology News
Geac plans and purchase push
up stock
More Technology News
TORONTO, Aug 25 (Reuters) - Geac Computer Corp.
Ltd. (GAC-T) got a nod of approval on Wednesday from
investors for the software developer's latest purchase and
expectations of another deal waiting in the wings.
The company's shares rose C$1.65 to C$32.25 on the
Toronto Stock Exchange, for a gain of 5.4 percent on light
trade.
Markham, Ont.-based Geac announced on Tuesday that
its Atlanta, Ga.-subsidiary Geac Computer Systems Inc. had
struck a C$25 million deal to buy software divisions from
Clarus Corp. (CLRS-T) , also based in Atlanta.
The deal expands Geac's offerings for mid-market
enterprise resource planning software, tools that manage
such business functions as inventories and payrolls.
Stock in Geac, Canada's largest software firm, may be
getting a boost from retail investors now learning about the
Clarus deal and market optimism over a much larger
purchase that is pending.
The deadline for the first offer period in Geac's
C$205.5-million bid for JBA Holdings Plc, Britain's second
largest software firm, falls on August 27.
"Presumably, the market is saying it's looking increasingly
like they'll have a good shot at picking this up," said David
Tyerman, analyst at HSBC Securities in Toronto. "Whether
they will or not I don't know."
To date, no competing offers have surfaced, which
suggests that Geac will not need to sweeten its bid of 250
pence per JBA share. Two major JBA shareholders had
earlier voiced opposition to the bid, announced July 22,
which they consider too low an offer.
The friendly takeover deal, already endorsed by boards of
both companies, requires approval from 90 percent of JBA
shareholders. |
