Inprise To Discuss Corel Merger Thu; Plan Continues
Tuesday, April 25, 2000 06:57 PM
OTTAWA (Dow Jones)--Inprise/Borland Corp. (INPR, news, msgs) still plans to go ahead with its merger with Corel Corp. (CORL, news, msgs), despite revelations that Corel's financial situation has "changed significantly" since the two software makers announced their intention to merge Feb. 7, according to an Inprise spokeswoman.
Asked if the merger was in jeopardy, Marilee Adams, vice-president of corporate communications for Inprise, said she couldn't comment.
"At this point we can't comment further. We need to wait to see what the board will actually be doing." But she said "At this point, we do have a definitive agreement and we are going forward."
She said Inprise executives will discuss the merger when the Scotts Valley, Calif., company issues its first-quarter results April 27.
Corel's "financial conditions have changed significantly based on information that has come up subsequently," she said. Inprise was aware of Corel's low cash reserves but didn't know Corel would be reporting poorer-than-expected first-quarter results in March.
Corel reported a loss of $12.4 million, or 19 cents a share, for the first quarter ended Feb. 29. Last week, Corel filed a quarterly statement with the Securities & Exchange Commission in Washington warning that it could run out of cash in the next three months if the merger doesn't go ahead and the company doesn't find additional financing.
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