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Wednesday, November 26, 2014

Tibco merger vote can proceed despite $100 million error -judge, (NASDAQ: TIBX)

Tibco Software Inc can proceed with a shareholder vote next week on its proposed $4.2 billion takeover by private equity firm Vista Equity Partners, despite an erroneous share count that initially overvalued the deal by $100 million, a Delaware judge said. Delaware Chancellor Andre Bouchard on Tuesday ruled that a shareholder seeking a preliminary injunction had failed to establish that Tibco and Vista agreed the merger would be consummated for an overall amount rather than at a price per share.The plaintiff, stockholder Paul Hudelson, sued to stop the vote until after a trial on his claim that the per-share price should be $24.58 rather than $24.00.While Bouchard called aspects of the sales process "flawed," he allowed the Dec. 3 shareholder vote to go forward, saying the plaintiff could later pursue damages later of up to $100 million.Tibco announced Vista's buyout offer on Sept. 29 , implying the deal, at $24 per share, would reflect an equity value of $4.24 billion. The deal, valued at $4.3 billion, included the assumption of debt.

TIBCO Software Inc. (TIBCO) is a provider of middleware and infrastructure software. Shares of TIBX traded higher by 0.36% or $0.085/share to $24.02. In the past year, the shares have traded as low as $18.20 and as high as $24.90. On average, 5160240 shares of TIBX exchange hands on a given day and today's volume is recorded at 24963930.