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.
The Sutter Opportunity Fund 2 acquires companies with "significant growth potential," according to an SEC filing Sutter made last January.
In July, the Sutter Opportunity Fund 2 offered to acquire shares of several trusts holding securities of bankrupt WorldCom Inc.
Plumtree issued a statement Wednesday afternoon confirming the offer from Sutter and saying that its board of directors would consider the offer "in due course." Plumtree said it had no previous contact with Sutter.
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