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CDC Formalizes Pivotal Offer.

CDC Corp and its parent chinadotcom Corp, have thrown the maelstrom that has become the Pivotal Corp acquisition into further turmoil by meeting the deadline to deliver a formal offer for the company and having had it determined as a "superior transaction" by the Pivotal Special Committee compared to the Oak/Talisma offer.

Last week, original bidder Oak Investment Partners gave permission for the CRM software supplier to take part in discussions with CDC. The agreement was that if CDC had not delivered a signed, irrevocable offer containing terms acceptable to the Pivotal Special Committee by midnight (Vancouver time) on November 30, 2003, the shareholders' meeting to consider the Oak Group transaction would have gone ahead as scheduled on December 3.

CDC met the deadline and has delivered the formal offer to both Pivotal and Oak. The emergency general meeting has been postponed until December 8.

The pressure is now on Oak to respond and under the terms of its agreement with Pivotal, it has until Thursday to amend its offer in such as way as that it is "reasonably likely to result in a transaction which is as favorable from a financial point of view to Pivotal shareholders as CDC's offer."

The CDC offers does not appear to have changed substantially since it was first mooted but several issues such as the due diligence timescale were ironed out last week. The proposal is based on an offer of $2.14 per share, based on $1.00 in cash and $1.14 in chinadotcom common shares, or $2.00 if shareholders opt for a cash deal. Oak is offering all cash deal based on a valuation of $1.78 per share.
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Publication:Computergram International
Article Type:Brief Article
Geographic Code:9CHIN
Date:Dec 2, 2003
Words:281
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