RealTime IT News

ISS Condones Western Multiplex, Proxim Merger

Proxy advisory firm Institutional Shareholder Services (ISS) Thursday said it recommended the proposed merger between wireless networking concerns Western Multiplex Corp. and Proxim Inc. .

That merger, one of equals, was proposed Jan. 17 and appeared to be progressing swimmingly until DMC Stratex Networks Inc. made its own bid for Sunnyvale, Calif.'s Western Multiplex on Feb. 28.

San Jose, Calif.-based DMC Stratex offered Western Multiplex stockholders 0.5215 shares of DMC Stratex common stock for each share of Western Multiplex common stock, valuing the deal at $166.8 million -- higher than Sunnyvale, Calif.-based Proxim's offer.

Now ISS, which has been thrust into public consciousness in recent weeks for sounding off on the Hewlett-Packard/Compaq issue, has come forth to suggest that Western Multiplex, who despite the proposed merger of equals is the acquisition target, should join with Proxim.

Proxim Chief Executive Officer David C. King said: "The recommendation follows a thorough analysis of the merger and its potential impact on institutional shareholder value. We are delighted that ISS shares our belief in the value and benefits of the merger."

ISS is the nation's leading independent proxy advisory firm and lends advice to shareholders for more than 8,500 U.S. meetings each year.

Proxim and Western Multiplex stockholders' will hold special meetings concerning the deal on March 26.