FRAMINGHAM (07/26/2000) - Invensys PLC Wednesday announced that it's continuing with a planned acquisition of financially strapped Baan Co. NV, despite once again not getting the amount of Baan shares that it had set as a condition for going through with the US$709 million deal.
London-based Invensys said it bought or received sale commitments for about 75 percent of Baan's shares under an extended tender offer that expired yesterday.
That still fell far short of the 95 percent level that Invensys was looking for, but the company said it has waived that requirement and signed a deal with Baan to take full control of the Netherlands-based business applications vendor.
The latest development follows announcements last week by Baan in which the company restated its 1999 financial results and warned that it would report its eighth straight quarterly loss when it releases its second quarter results -- a pair of blows that Baan executives said raised "significant uncertainty" about the company's ability to continue operating without a takeover by Invensys.
Invensys CEO Allen Yurko Wednesday said in a statement that the worsening situation at Baan "required decisive and immediate action." Invensys officials considered terminating the acquisition offer but decided that Baan could still be a viable entity "once we have completed the comprehensive restructuring it requires," Yurko added.
More details to come.