UPDATE 2-I2 Technologies ends merger deal with JDA Software
(Recasts, adds detail, analyst's comments)
By Sandhya Menon
BANGALORE, Dec 4 (Reuters) - Business-software maker I2 Technologies Inc ITWO.O said it terminated its merger agreement with JDA Software Group (JDAS.O), sending its shares down as much as 23 percent.
On Nov. 6, I2's board shot down a proposal from JDA to cut the per-share price to below $14.86 that it had offered for the company.
JDA, which had offered to buy I2 for about $346 million in August, had earlier indicated that it may lower the price in the wake of worsening economic conditions.
"The market evidently doesn't think that there is another player coming," Cross Research analyst Richard Williams said.
He believes that the original price offered by JDA was "remarkably genereous" given the prior environment.
"So, it seemed reasonable to re-negotiate that price, particularly given the funding constraints," Williams added.
The company said it expects to receive the non-refundable termination fee of $20 million from JDA within three business days.
Shares of the Dallas, Texas-based company fell to a low of $5.90, before recovering some of its losses to trade down $1.51 at $6.19 Thursday on Nasdaq. (Reporting by Sandhya Menon in Bangalore; Editing by Jarshad Kakkrakandy, Anil D'Silva)
