Gemstar rejects buyout bid
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July 16, 1998: 12:42 p.m. ET
$2.8 billion takeover offer from United Video called financially inadequate
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NEW YORK (CNNfn) - Gemstar International Group Ltd. Thursday rejected an unsolicited $2.8 billion buyout offer from United Video Satellite Group Inc.
Gemstar said its board voted to reject the $45 per share offer because, among other things, it "is inadequate from a financial point of view."
Gemstar Chief Executive Officer Henry Yuen said seven of the company's 10 board members voted to reject the offer. He added that while the company isn't for sale, it will examine any "bona fide" proposals.
United Video President and Chief Operating Officer Peter Boylan, who made the bid to acquire Gemstar, wasn't available for immediate comment.
United Video is controlled by cable giant Tele-Communications Inc. (TCMOA). The buyout offer was widely seen as an effort by TCI to cobble together a lucrative "gateway" to interactive television.
United Video (UVSGA) provides the Prevue Channel, which sends on-screen TV listings to more than 50 million homes. The company also recently acquired News Corp.'s TV Guide for $2 billion.
The deal would have combined United Video's properties with Gemstar's interactive technology. Gemstar, best known for its VCR Plus+ home video recording system, also offers the Guide Plus+ Gold interactive TV program listing service.
Earlier Thursday, Gemstar signed a deal with NBC to develop and promote Gemstar's Guide Plus+ on NBC, MSNBC and CNBC.
Gemstar shares (GMSTF) climbed 13/16 to 42-15/16 in midday trading.
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