Vector Withdraws Buyout Bid For Corel

Ottawa, Ontario (AHN) - Software developer Corel Corp. announced Monday that its majority shareholder Vector Capital Corp. is pulling out its buyout offer so Corel can look at other options in boosting shareholder value.

CBC reported that unit of San Francisco, California-based Vector Capital currently holds 69 percent of the outstanding shares of Corel, and had earlier offered $11 a share in cash to acquire the rest of the shares. Corel had a total of 24.5 million shares outstanding, which values the bid at about $84 million.

The Vector unit advised Ottawa, Ontario-based Corel that it withdrew its acquisition plans to enable Corel to look at other buyers.

Corel dissolved a special committee, which would help its board review and decide Vector's bid. The board will now look at other buyout bidders and alternatives.

Established in 1985 by Michael Cowpland, Corel became popular for its CorelDraw graphics program in the 1990s.