Vector Set to Acquire Corel

By Peter Galli  |  Posted 2003-06-05 Print this article Print

The struggling Canadian software firm on Thursday indicated that it was about to be acquired by San Francisco's Vector Capital Corp.

Struggling Canadian software firm Corel Corp. on Thursday indicated that it was about to be acquired by San Franciscos Vector Capital Corp. In March, Corel admitted that it was actively trying to find a buyer for its business and had signed a non-disclosure and standstill agreement with Vector Capital that let Vector investigate a takeover bid. On Thursday, Corel said the negotiations with Vector Capital were continuing for a potential transaction for the acquisition of the company. Under the existing agreement between the two firms, Vector Capital has the contractual right to make an offer to Corels shareholders to purchase all common shares at a price of $1.10, but the deal appears likely to be struck below that price.
"In light of recent trading activity in Corels common shares, Corel has announced that there is a high likelihood that it will shortly enter into a definitive agreement with Vector Capital for a transaction at a price per common share which will be below US $1.10 per share and which the Board of Directors will recommend that shareholders approve.
"Corel will make a further announcement upon entering into any definitive agreement with Vector Capital or terminating discussions, whichever occurs," the company said in a short statement released on Thursday. Corels share price closed $0.09 cents or 8.65 percent lower at $0.95 cents on Thursday as some 4.8 million shares changed hands in trade on the Nasdaq index.

Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at


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