S1 Corporation (Nasdaq: SONE) will hold a special shareholder meeting on September 22, 2011 to consider and vote on the proposed merger with Fundtech Ltd. (Nasdaq: FNDT; TASE: FNDT). The companies announced the merger in a share swap deal in July.
Following the announcement, larger rival ACI Worldwide Inc. (Nasdaq: ACIW) made an unsolicited offer for S1 at a higher value of $540 million. S1's board of directors rejected the offer, saying that it stood by the merger with Fundtech, on the ground that it was better for the company and its shareholders.
ACI's bid will not be on the agenda of the shareholders meeting. However, if the shareholders reject the merger with Fundtech, S1's sale to ACI could be reopened, irrespective of any offers ACI makes between now and the shareholders meeting.
Judging by trading in the companies' shares, investors apparently prefer ACI over Fundtech. S1's share price rose 2.1% on Friday to $9.10, giving a market cap of $486 million - a 4% discount on ACI's offer. Fundtech's share price rose 1.4% on Nasdaq to $15.96, giving a market cap of $250 million - 36% less than the proposed merger price with S1. Fundtech's share price fell 3.7% by mid-afternoon on the TASE today to NIS 55.
Published by Globes [online], Israel business news - www.globes-online.com - on August 14, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011