Lawson Software to Be Taken-Under

Mar.15.11 | About: Lawson Software, (LWSN)

On Friday, Lawson Software (NASDAQ:LWSN) said that it was considering an unsolicited takeover bid from privately held Infor and Global Solutions and Golden Gate Capital at $11.25 per share:

Lawson Software, Inc. today confirmed that it received an unsolicited, non-binding proposal from Infor and Golden Gate Capital to acquire all of the company’s outstanding common stock at a price of $11.25 per share in cash. The parties are engaged in discussions regarding this proposal; however, there can be no assurance that any agreement will be reached.

Following receipt of the unsolicited proposal, the company’s board of directors retained Barclays Capital, Inc. as its financial advisor to assist in evaluating the proposal, as well as other possible strategic alternatives. Lawson’s board has not made any determination to sell the company or engage in any other strategic transaction, and there can be no assurance that the unsolicited proposal or the evaluation of strategic alternatives will result in any sale or other transaction, whether with Infor and Golden Gate or any other party.

This is a 2.5% discount to Friday’s close, also known as a take under. However, unlike other take unders profiled on this site, it is likely only that speculators would be harmed, as the stock took off last week on news that Lawson hired an outside adviser. Speculators pushed the share price up above $12, thinking the offer would come in higher than it did. This is still a hefty premium to where the company has been trading for most of the last year.

Author Disclosure: No position