STOCKHOLM (08/04/2000) - Coinciding with the Amsterdam stock exchange Friday removing Baan Co. NV from its blue-chip AEX index, Invensys PLC in a statement reiterated that it now controls a majority stake in Baan and vowed to restore the troubled vendor to a leadership position in the market for industrial and commercial software.
"Baan's customers should be totally confident that Baan's future is now secure," Invensys said in Friday's statement.
As it assumes management control, however, Invensys is expected to start laying off hundreds of Baan staff, representatives for both Baan and Invensys said Thursday. [See "Invensys to Lay Off 700 to 800 Baan Staff," August 3.]The London-based software automation and controls company said that, as of August 1, its 72 percent controlling stake in Baan consisted of 66 million shares, or 25 percent, that it owned outright, as well as acceptances of 47 percent, or 127 million shares.
Invensys has extended to August 29 the period during which it will continue to purchase tendered Baan shares at a price of 2.85 euro (US$2.67) each.
Although Baan no longer is included in the AEX index, which until a replacement for Baan is chosen will consist of 24 companies, the remaining 28 percent of Baan's shares not yet controlled by Invensys will continue to be traded on the Amsterdam stock exchange.
In late Friday trading, Baan's shares were selling at 2.83 euros.
Baan, with dual headquarters in Barneveld, the Netherlands, and Reston, Virginia, can be reached at +31-342-42-8888 or +1-703-234-6000, or via the Web at http://www.baan.com/. Invensys, in London, is at +44-207-834-3848 or at http://www.invensys.com/.