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Technology Stocks : Enterprise Informatics -- Ignore unavailable to you. Want to Upgrade?

To: jackhach who wrote (2957)	12/15/1998 1:03:00 AM
From: bob zagorin	Read Replies (1) \| Respond to of 13797

December 14, 1998 Open Text Withdraws Offer For Software Rival PC Docs Dow Jones Newswires A week after PC Docs Group International Inc. rejected its $118.4 million offer as "woefully inadequate," Canadian software maker Open Text Corp. Monday withdrew its bid. The deal would have exchanged one Open Text share for every four PC Docs shares outstanding. PC Docs had 24.6 million American depositary receipts outstanding at the end of the last fiscal quarter. PC Docs, citing concerns about Open Text's long-term prospects in the face of increasing competition from mainstream infrastructure vendors, had said it decided to cease any further communication with Open Text regarding the takeover offer. The conclusion was backed by the company's financial adviser, CIBC Wood Gundy/Oppenheimer. Instead, PC Docs said an advisory committee of outside directors formed by the company in February will continue to pursue strategic initiatives, including possible acquisitions and alliances, to boost shareholder value. Open Text, of Waterloo, Ontario, develops software that allows companies to manage and manipulate information over corporate networks based on the Web. Toronto-based PC Docs develops similar software that allows users to manage and analyze information stored in computer documents. Open Text's customers tend to be big manufacturers. An acquisition of PC Docs would have broadened its customer base to include PC Docs' big market share in sales to legal and accounting professionals. In addition, Open Text would have gained access to markets in Europe when PC Docs is more established. Open Text's business is focused in North America. Defending its decision to remain independent of Open Text, PC Docs said it has achieved a five-year compound annual growth rate of 47% and that it is planning "aggressive" cost-cutting moves over the next 12 months that are expected to result in annual cost savings of C$10 million.