Pivotal rejects second takeover bid in four days
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Pivotal, a mid-market CRM software supplier, has rejected its second unsolicited takeover bid in four days.
19 November 2003 Pivotal, the mid-market customer relationship management (CRM) software supplier, said yesterday that it had rejected its second unsolicited takeover bid in four days.
The latest bid for Pivotal — which recently agreed to merge with rival CRM supplier Talisma — came from CDC Software, a US-based application integration subsidiary of Hong Kong technology concern Chinadotcom.
Pivotal, which is strong in the manufacturing industry, said the deal was too risky and came with too many conditions.
CDC offered $53 million in cash and shares for Pivotal. Last week, Onyx Software's $58 million all-stock offer for Pivotal was also rejected.
Pivotal, which is based in Vancouver, Canada, said in a statement that a merged Pivotal/Onyx "would not be an attractive entity." Such a merger would be costly, in terms of finance and jobs, and would lead to a significant loss of customers, Pivotal added.
The would-be deals are a fresh sign of building momentum behind consolidation in the mid-market.
The entry of Microsoft has helped to trigger a spate of mergers, say observers — most notably PeopleSoft's recent takeover of JD Edwards, a mid-market enterprise resource planning software supplier.
