Technology patent firm Wi-LAN raises hostile bid for Mosaid to $524.5 million
20 Oct 2011
Technology patent-licensing company Wi-LAN Inc has raised its unsolicited bid for Mosaid Technologies Inc by 11 per cent to about C$532 million ($524.5 million) after its fellow Canadian patent company rejected its C$480 million ($490 million) offer in August.
Wi-LAN yesterday raised its hostile offer for Mosaid from C$38 per share to C$42 per share, valuing the company at about $524.5 million.
The revised offer represents an 11 per cent premium to the original offer and a 38.6 per cent premium to the average trading price of the Mosaid for the period ending 17 August, the last trading day prior to the announcement of the initial offer.
Wi-LAN, which first made an offer for Mosaid in August, (See: Canadian patent-licensing firm Wi-LAN intends to buy rival Mosaid for $490 million) said the revised offer "provides immediate and certain value for Mosaid shareholders and removes exposure to business uncertainty and ongoing operational and market risk, particularly in light of the continued volatility in global financial markets."
Wilan had said, that it has attempted to pursue a supported transaction with Mosaid on several occasions over the last several years only to be rebuffed every time and said that it would welcome the Mosaid board to support the transaction.
"We continue to believe that combining our two Ottawa-based firms is a unique and exciting opportunity to create a global IP licensing powerhouse that combines the talent of two great teams," said Jim Skippen, chairman and CEO of Wi-LAN.
"Acquiring Mosaid fits perfectly within our long-term growth strategy and our commitment to increasing shareholder value," he added.
