Growth Fund Makes Bid for Plumtree
Sutter Opportunity Fund 2 LLC is seeking to acquire the corporate portal software developer.Sutter Opportunity Fund 2 LLC, an affiliate of investment banking firm Sutter Capital Management LLC, has made a bid to acquire corporate portal software developer Plumtree Software Inc., the fund announced Wednesday. The bid, made just three months after San Francisco-based Plumtree went public, will call for Sutter to buy all outstanding shares of Plumtree for $5 per share. Payment for each share would consist of $2 cash and the other $3 in the form of an 8 percent note that would mature in five years, officials at Sutter, also in San Francisco, said. The total value of the deal would be about $147.2 million. Plumtree shares, which jumped following the news, are trading between $3 and $4 a share today, after closing at $2.77 per share Tuesday. Plumtree debuted on the public market at $8.50 per share June 4.
If Plumtree accepts the deal, which will expire Monday, Sutter will make a $1 million good-faith deposit into an escrow account designated by Plumtree.