Openwave to continue with stand-alone plan as Harbinger's tender offer fizzles

By Lisa Kerner

Charlotte, N.C., June 22 - Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, LP allowed their tender offer for shares of common stock of Openwave Systems Inc. to expire as planned at midnight on June 21 after an insufficient number of shares were tendered.

Only about 40%, or 27,980,640 shares, of Openwave common stock were tendered prior to the deadline.

As a result, Harbinger will not take up the shares tendered and will not extend the offer, according to a company news release.

"Over the past weeks and months, we have met with and listened to many of our stockholders, and we greatly appreciate their insights and feedback," Openwave stated in response. "With the Harbinger tender offer now behind us, we look forward to continuing to execute on our stand-alone plan. Our board and management team strongly believe that continued execution of our plan will drive sustainable revenue and profit growth, and we are committed to enhancing value for all of our stockholders."

On June 7, Harbinger and its subsidiary Oreo Acquisition Co., LLC reduced the per-share offer price for Openwave by $1.20, the amount of the company's dividend declared on June 4, to $7.10. The original purchase price for the Redwood City, Calif., software company under the May 22 offer was $8.30 per share.

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