LibertyOne Says No to Takeover Bid
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[Sydney, AUSTRALIA] Web media developer LibertyOne has turned down a takeover offer from Florida-based digital rights management software company CyberSentry following a trading halt called on the Australian Stock Exchange on Tuesday afternoon.
The company, which has been denying takeover rumors for a number of weeks, has again confirmed that no takeover offer had been received from CyberSentry, despite CyberSentry's conflicting announcement last week that it had made an official bid for the Australian company.
The company's new chairman Nicholas Whits Whitlam said LibertyOne had written to CyberSentry advising that in the terms contained in their recent letter, it would be unlikely to have the Board's support, "as it undervalues the company and we do not believe the two businesses are complementary," he said.
Within the offer, CyberSentry proposed to exchange one of its own shares for seven LibertyOne shares, placing each of the Australian company's shares at a value of 30 cents.
LibertyOne will undertake this task by the appointment of a number new staff intended to reposition the company for the future. Graham Bristow will step down from the Board and the position of managing director, while Marcelle Anderson, general manager for strategic investments and acting CEO, will become CEO.
LibertyOne, which has attempted to list on the Nasdaq unsuccessfully three times, also said it will not proceed with a Nasdaq listing at this stage.
Whitlam said the changes would enable LibertyOne to refocus on running its core business.