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March 22, 2006

Chinese suitors still covet Onyx

Posted by Kristi Heim at 4:38 PM

Even after its first bid was summarily rejected two months ago, CDC Corp. is still hotly pursuing Bellevue's Onyx Software, this time for an outright acquisition.

Hong Kong-based CDC said today that its CDC Software subsidiary presented a new simplified proposal to Onyx's board. For each share of Onyx, Onyx shareholders would receive cash or a combination of half cash and half CDC shares. CDC valued the Onyx shares at $4.57 each, about a 20 percent premium over recent trading prices.

Showing it also intends to push hard this time around, CDC issued its statement less than 24 hours after sending Onyx its new proposal. CDC said it was disappointed in January, but "has been even more surprised by the lack of interest it has received from Onyx since then." Onyx responded today it had received CDC's unsolicited proposal and its board will evaluate it. The CRM software maker added that it "remains optimistic about its market opportunity and is firmly committed to continue to execute its current growth strategy while evaluating the proposal." Translation: we don't need you; you need us. Yet Onyx could be doing much better if combined with CDC's enterprise software strengths, said CDC Software senior VP Scot McLeod. Wall Street warmed to the idea: Onyx's stock price rose 12 percent to close at $4.48 on today's news.

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Tricia Duryee
Tricia Duryee
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Kristi Heim
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