Invensys has finally taken control of Dutch software vendor Baan, after having gained control of 72 per cent of the company's stock by yesterday's deadline.
The UK technology firm said it would guarantee Baan's short-term future and "restore Baan's leadership position". It will now incorporate Baan assets and liabilities into its business and begin winding up the Baan holding company, which could take up to a year and is subject to shareholder approval at an EGM scheduled for 15 August.
Acceptances were down slightly from the 75 per cent provisionally tendered a week earlier as some investors held out in the hope of a better price while others, including ING Group, stand to gain from tax breaks when Baan goes into liquidation.
Despite saying previously that it would tender its shares, ING decided not to as Baan's continuity no longer depends on it, a representative said.
The takeover had been obstructed by a block of investors called BaanInvestors, which claim to own just under 20 per cent of Baan, ING and other small investors unaffiliated with the firm. Using the baaninvestors.com website, the group has been promoting the argument for extensions to Invensys' offer.
However, Baan stressed that it could face bankruptcy if the Invensys deal was not completed, and this appears to have finally convinced enough shareholders for the takeover to go ahead.
The troubled software company reported earlier this month that it would suffer an operating loss of between $85m and $95m for its fiscal second quarter, on revenue barely expected to reach $80m. This compares with sales of $106m in the first quarter of 2000, and $130m in the fourth quarter of 1999.
"Baan's customers should be totally confident that Baan's future is now secure," the firm said in a statement. "Invensys will restore Baan's leadership position in manufacturing software solutions."
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