In an attempt to save its $709 million bid to acquire Baan, London-based Invensys PLC on Friday extended until July 25 the deadline on a tender offer for the shares of the struggling business applications vendor.
The offer to buy Baan's shares under a deal announced two months ago had been scheduled to expire on Thursday last week. But Invensys said a tally of the shareholder vote revealed that it had only received commitments for 58% of Baan's outstanding shares -- far below the 95% level that Invensys officials set as a condition for going ahead with the acquisition.
A group of Baan shareholders claiming to control nearly 20% of the Netherlands-based software vendor has said it wants the two companies to renegotiate the deal with a higher price in mind. But Invensys on Friday said it's not increasing the value of the all-cash offer at this point. In addition, the 95% acceptance condition is being left in place, the company added.
Invensys also urged Baan shareholders who haven't accepted the buyout offer to do so "without delay." Failure to do so "increases the likelihood that the remaining condition of the offer will not be met and Baan will therefore be left to face a difficult and uncertain future," Invensys said.