McAfee could accept Network Associates offer

McAfee could accept Network Associates offer

World IT Report Reporters

Network Associates latest offer to acquire the shares of McAfee that it does not own, was described as fair by a special committee of McAfee board of directors. The current offer would exchange each outstanding share of McAfee.com for US$8 cash plus 0.675 of a Network Associates share, worth around US$10.46 based on Thursday’s closing price.

According to CNET, the total deal is only slightly higher than McAfee’s Thursday closing price of US$18.40, but considerably above the original offer, which was worth about US$9.86 at the time. Network Associates, which makes security software, sold shares in McAfee.com to the public in 1999. It owns about 75% of McAfee, which delivers antivirus and security services over the Web.

McAfee.com had rejected the original bid as financially inadequate, and Network Associates had come back with higher offers. Network Associates even pulled its McAfee bid after the company restated its results amid accounting irregularities. Network Associates decided to get back into the game earlier this month, raising its offer yet again, and extending the time of the offer. – (WorldITReport.com)

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