Comverse Technology Inc. (Pink Sheets: CMVT) and subsidiary Ulticom Inc. (Pink Sheets: ULCM) are abandoning the search for a buyer for the latter, five months after Comverse first announced it was seeking to sell the company. Ulticom failed to attract potential buyers and the investment bank it engaged for this purpose, Jeffries & Company Inc. was similarly unsuccessful.
In a notice to the US Securities and Exchange Commission (SEC) yesterday, Ulticom said, "Ulticom will continue to explore alternatives to enhance shareholder value and will focus on completing its restated and corrected financial statements."
Comverse and its subsidiaries have not released any financial statements since the options backdating scandal came to light in early 2006. It is likely that the decision to abandon the search for a buyer was taken because Comverse believes it will have more success in finding a buyer for its subsidiary, and perhaps at a higher price once the restatement of its accounts has finally been completed.
Comverse acquired Ulticom in 1995. The US company makes signaling solutions for wireless, wireline, and Internet communications.
Published by Globes [online], Israel business news - www.globes-online.com - on September 18, 2008
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