Harbinger seeking Openwave acquisition

Private equity fund Harbinger Capital Partners announced a $335 million offer to acquire 49 percent of embattled mobile media software provider Openwave Systems. If the offer is accepted, Harbinger--which already owns 13 percent of Openwave common stock--would then merge the company with fixed mobile convergence specialist Bridgeport Networks, with BridgePort CEO Mike Mulica, a former Openwave senior VP, installed as president and CEO of the combined company.

Harbinger's offer--extended by its Oreo Acquisition subsidiary-expires at midnight EST on June 19. "We firmly believe that full stockholder participation in our offer will provide the most attractive outcome for all shareholders, employees and customers of Openwave," said Harbinger managing director Howard Kagan in a prepared statement. "We believe Openwave has the potential to return to its leading position in telecommunications software development."

In late March, Openwave president and CEO David Peterschmidt announced his resignation, with former executive VP of worldwide field operations Robert Vrij named his replacement. At the same time, Openwave announced that it retained financial advisor Merrill Lynch & Co. to explore strategic alternatives and options to enhance shareholder value, including a possible sale of the company. Openwave's board of directors also formed a strategic alternatives committee with Peterschmidt as committee chair.

For more on Harbinger's offer:
- read this release

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