Idealab, investors still sparring over buyback. (Technology).THE board of embattled em·bat·tled adj. 1. Prepared or fortified for battle or engaged in battle: embattled troops; an embattled city. 2. incubator Idealab Inc. has turned down an offer to settle a $1 billion lawsuit filed earlier this year by a group of investors. Earlier this month, the investor group countered Idealab's offer to buy back shares for 10 cents on the dollar with its own proposal that would have upped the price to 37 cents. The proposal would give all Idealab shareholders the choice of liquidating or maintaining their investment and came from investors in the fourth round, which closed in early 2000. The plan also proposed that investors in the first three rounds receive 50 cents for each dollar invested. Idealab said the company could not afford the proposed settlement. As of Jan. 31, the company said it had cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $381 million and estimated private securities between $150 million and $300 million. In a letter signed "The Idealab Board of Directors" and delivered through regular mail, the company said that the proposal would result in a "de facto [Latin, In fact.] In fact, in deed, actually. This phrase is used to characterize an officer, a government, a past action, or a state of affairs that must be accepted for all practical purposes, but is illegal or illegitimate. liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy " because it would leave Idealab with a negative cash balance of more than $7 million. The investors claim that Idealab could spend up to $355 million to buy back all the shares, leaving $18 million in cash and its remaining investments in private companies. The plaintiff's lawyer, Louis Miller of Christensen, Miller, Fink fink Slang n. 1. A contemptible person. 2. An informer. 3. A hired strikebreaker. intr.v. finked, fink·ing, finks 1. To inform against another person. , Jacobs, Glaser, Weil & Shapiro, LLP LLP - Lower Layer Protocol , said Idealab's reaction means the suit will move forward with discovery and depositions beginning this week. "We're obviously disappointed it was rejected out of hand, but not surprised," Miller said. "It's disappointing when there's no independent person to review it, no analysis and no substantive response." Idealab spokeswoman Teresa Bridwell said Miller made the liquidation proposal knowing that the company changed its operating plan in March to reflect higher operating budgets Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. . Staff reporter Christopher Keough can be reached at (323) 549-5225 ext. 235, or at ckeough@labusinessjournal.com. |
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