Hewlett-Packard extend its $11.7 billion offer for UK’s Autonomy
13 Sep 2011
Hewlett-Packard (HP), the world's largest PC maker has extended its offer deadline for its proposed $11.7-billion acquisition for software maker Autonomy Corp, after fewer than half of the UK company's investors parted with their stake.
After the original deadline expired on 2 September, HP has now extended the deadlin till 3 October, it said in a regulatory filing today.
As of 12 September, only 41.62 per cent of Autonomy's shareholders tendered their shares to HP's offer.
In a bid to boost earnings and as part of a major restructuring, HP, the world's largest PC maker proposed last month to acquire Autonomy for £25.50 ($42.11) a share in cash, a premium of 64 per cent to Autonomy's closing price on 17 August. (See: Hewlett-Packard to acquire UK software firm Autonomy for $11.7 billion)
Dr Mike Lynch, founder and CEO of Autonomy, who owns 8.1-per cent of the company, and other directors owning a combined 1 per cent, had agreed to tender their shares to the offer.
Lynch will make around £500 million ($800 million) from the transaction at the takeover price, not including stock options, while its UK employees will take £30 million on stock options.
