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UPDATE 1-Constellation makes 33p/shr cash offer for Gladstone
March 2, 2010 / 3:45 PM / in 8 years

UPDATE 1-Constellation makes 33p/shr cash offer for Gladstone

* Acquires further 13.6 pct in Gladstone for 2.2 mln stg

* Offer values entire co at 18.1 mln stg

* Offer at 17.9 pct premium to Gladstone’s Monday close

* Gladstone shares up 12.5 pct (Adds details)

March 2 (Reuters) - Canada’s Constellation Software Inc (CSU.TO) said on Tuesday it would make a mandatory cash offer for British software firm Gladstone Plc GLAD.L at 33 pence per share after raising its stake in the company to 43.5 percent.

Constellation said it acquired a further 13.6 percent of Gladstone, or 6.6 million shares, for 2.2 million pounds ($3.3 million).

The 33-pence-a-share offer, which represents a premium of 17.9 percent to Gladstone’s Monday close on the London Stock Exchange, values the existing issued share capital and in-the-money share options of Gladstone at about 18.1 million pounds.

“Gladstone represented an opportunity to establish a position in the UK health club and leisure centre sectors and Constellation acquired a substantial shareholding in Gladstone in March 2008,” Constellation said in a statement.

Gladstone shares were up 12.5 percent at 31.5 pence at 1540 GMT, while Constellation shares fell 10 Canadian cents to C$39.90 on the Toronto Stock Exchange. ($1=.6670 Pound) (Reporting by Tresa Sherin Morera in Bangalore; Editing by Unnikrishnan Nair)

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