UPDATE 4-Wi-Lan raises bid for Mosaid to C$532 mln

Wed Oct 19, 2011 2:35pm EDT

* Wi-Lan raises offer to C$42/share from C$38

* Company says offer is final, expires Nov. 1

* Mosaid shares rise 3.67 pct to C$42.35

By Pav Jordan

TORONTO, Oct 19 (Reuters) - Canada's Wi-Lan Inc raised its hostile bid for Mosaid Technologies Inc to C$532 million ($527 million) on Wednesday and said its latest offer for the patent licensing company was final.

Wi-Lan wants to buy Mosaid to help boost its patent arsenal and make it easier to extract lucrative licensing deals from technology giants in areas ranging from wireless to semiconductors.

Wi-Lan is now willing to pay C$42 a share for Ottawa-based Mosaid, an 11 percent increase over the C$38 all-cash offer it made on Aug. 17.

"Mosaid shareholders are going to have the ability to get C$42 a share, and that's a certainty," Wi-Lan Chief Executive Jim Skippen told Reuters. "If they don't tender, then that's it, and we'll be done, and we'll be moving on to other things."

Wi-Lan and Mosaid make money by developing and licensing intellectual property for the communications and consumer electronics markets, where tech majors pay increasingly huge sums for patents to use as weapons in litigation and cross-licensing.

TALKS WITH SHAREHOLDERS

Mosaid shares rose 3.67 percent at C$42.35 on the Toronto Stock Exchange in Wednesday afternoon trade, in line with Wi-Lan's latest offer.

Mosaid advised shareholders to take no action, reminding them it was exploring other options and pledging to make a recommendation before the Wi-Lan bid expires on Nov. 1.

The company said last week that it was in talks with other parties. At the time, it said a $5 billion private equity firm had expressed interest in making an offer that was "meaningfully stronger" than Wi-Lan's earlier proposal.

In the interview, Wi-Lan's Skippen said he had had some discussions with Mosaid since his company first made an offer, but talks had not been productive.

"We have, however, had a number of discussions with shareholders, which have been more fruitful, and we feel confident that this is a price at which most shareholders will feel comfortable tendering."

Skippen said Wi-Lan would be willing to proceed with its bid with or without the core wireless patents Mosaid acquired from Nokia and Microsoft soon after Wi-Lan's takeover approach was announced.

Mosaid has contended that Wi-Lan's earlier offer failed to account for the patents involved in the Nokia-Microsoft deal.

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