Shareholders Begrudge Baan Buyout - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Shareholders Begrudge Baan Buyout

Baan Co. tried to "give comfort" to shareholders today by recommending that they sell their stock to Invensys plc, a factory automation-equipment and software vendor that is proposing a buyout. But a group of 22 shareholders holding about 20% of Baan's stock is shopping around for a better deal.

Baan interim CEO Pierre Everaert said today that the shareholders' group is threatening not to tender its shares to either drive up the $2.65-per-share price being offered by Invensys, put together its own bail-out plan, or find a buyer who will pay more than Invensys. The company is offering more than $709 million to purchase all Baan stock, which was trading in the $2.50-to-$2.60 range earlier today. Invensys has set July 13 as the deadline to buy 95% of the stock.

Everaert, who was interviewed after an emergency shareholders meeting at which Baan explained the Invensys buy-out plan, said Baan has not been contacted by the group. He said the shareholders are upset because their stock, which traded at more than $55 a share in April 1998, is now worth so little. In June, the stock plunged to a low of $1.12. Everaert said the disgruntled shareholders' group, which did not attend the meeting, cannot legally hold direct negotiations with Invensys. He added that the group is unlikely to put together its own financial package to solve Baan's financial problems because it would take more than $1.3 billion in cash to return Baan to profitability as a separate company.

An Invensys spokesman says the company already has purchased about 20% of Baan's shares on the open market, but does not know how many shares have been tendered. Invensys has taken no position on what it will do if unhappy shareholders do not tender their shares by July 13. Offering a higher price for Baan's shares might be an option, but completing the deal with less than 95% of Baan's shares is another, he said. If Invensys gets 95% of shares, the remaining shareholders will be forced to sell and Baan will become a private holding of Invensys. If less than 95% are tendered, the spokesman says, Invensys could operate Baan as a division in which shares are held publicly, or Invensys could back out of the deal.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll