Will i2 / JDA Deal Suffer in Wachovia Collapse?

Shares of i2 (ITWO) are down sharply today on concerns that the collapse of Wachovia (WB) could cripple the company’s deal to be acquired by JDA Software (JDAS).

In August, i2 agreed to be acquired by JDA for $14.86 a share. But as I noted last week, the deal was to be financed by up to $450 million in debt financing from Wachovia (WB) and Credit Suisse (CS). No word yet from either company on what the Wachovia news might mean for the pending transaction, and whether the financing can still be completed.

But clearly, the market is not optimistic. ITWO is down 67 cents, or 5.2%, to $12.35; the stock is off 11.3% over the last 6 trading days.

Comments

[Silver Sleuth:]

The Wachovia failure is not the only issue here. More importantly, the legal issues surrounding i2 Technologies patent dispute with SAP America and SAP AG could cripple both companies.

2008 Dec 09 07:30 AM