Merchandising, supply chain and revenue management  software maker JDA Software Group Inc, which bid to acquire rival Dallas-based i2 Technologies Inc., which makes supply-chain management software, for $346 million in cash in August, (See: Retail software maker JDA acquires i2 Technologies for $346 million) may lower the offer price for the acquisition in view of the worsening economic conditions.

JDA, which has posted lower net income so far this year on falling license and software revenues, plans to fund the acquisition from debt.

Saying available credit terms would result in unacceptable risks and costs to the combined company, it requested i2 to adjourn its shareholder meeting scheduled later in the day today to allow the two companies to negotiate a reduced purchase price to close the merger.

"We continue to believe in the strategic benefits that a merger with i2 would provide," said JDA CEO Hamish Brewer, as it would double its manufacturing presence to include discrete manufacturing, commonly used among computer products, entails the just-in-time method of building items.

The  also expects to save $20 million annually through the merger.

JDA says it believes that these steps are necessary to ensure the long-term strength of the combined company and protect its shareholders as the company believes the acquisition adds discrete manufacturing to its manufacturing offerings and strengthens its retail and transportation management presence.

It said in a statement that if i2 proceeds with its shareholder meeting as planned, JDA will exercise its discretionary right under the agreement and plan of merger to take up to 60 days in order to continue to attempt to arrange acceptable debt financing.

Brewer said, "We are disappointed that the current financial credit market and economic environment is impacting our plans to close this acquisition this week. Our business remains strong as does our respect for i2's solutions, associates and customers, and we look forward to working with i2 and its Board to finalize this acquisition.''