McAfee Rejects Network Associates' Offer

Antivirus service provider McAfee.com Corp. said Tuesday that a special committee recommended to shareholders that they reject Network Associates' offer to acquire the remaining 25% of McAfee that it doesn't already own.

The special committee, established to review the offer to acquire the rest of McAfee in exchange for 90 cents per share of Network Associates common stock, says the deal isn't in the best interests of McAfee's stockholders.

In a statement, McAfee cited strong growth in its antivirus and related subscription services, including expanded relationships with America Online and Microsoft as well the launch of new services such as the McAfee.com SecurityCenter and Spamkiller, as reasons for its recommendation to reject the offer. McAfee also said a significant decline in Network Associates' business prospects because of the corporate IT spending slump contributed to its decision.