UPDATE 1-AccessData may seek place on Guidance Software board

(Recasts; adds AccessData CEO and analyst comments)

By Purwa Naveen Raman

BANGALORE, Nov 4 (Reuters) - Privately held AccessData Corp may try to nominate candidates of its choice to Guidance Software Inc's (GUID.O) board, after its $4.50-a-share buyout offer for the rival digital-investigation software developer was rejected.

"We are not trying to force a transaction, we simply want the shareholders to decide as opposed to (Guidance Software's) board," AccessData CEO Tim Leehealey told Reuters.

Leehealey, who also said AccessData has the ability to finance a possible deal entirely in cash, does not expect to raise the offer price.

Guidance Software, whose shares rose as much as 20 percent to $3.80 on Tuesday, was not immediately available for comment.

AccessData made its bid for the company on Oct 6, offering 13 percent more than Guidance Software's closing price of $3.99 on Oct. 3 -- the last trading day preceding the offer. Guidance Software turned down the offer on Oct. 31.

"(Guidance Software's) board should know that in the event this offer is not accepted or in the event we receive no response by October 31st, AccessData intends to take this offer directly to the Guidance Software shareholders," AccessData's Leehealey had said in a letter dated Oct. 6 to Guidance Software's board of directors.

In a statement on Monday, AccessData said it would continue to pursue "all options available to consummate" the deal.

But Stanford Group analyst Kevin Buttigieg believes the a deal is not likely to go through due to antitrust issues, among other factors.

Guidance Software dominates about 90 percent of the law-enforcement market for computer forensics software with its EnCase Forensics product, and is followed by AccessData, Buttigieg said.

Only these two companies have the "seal of approval" from the court system, which means evidence gathered with their products is accepted as being in its original form in court proceedings, Buttigieg said.

"(The offer) does in our opinion highlight Guidance Software's strategic value as an acquisition candidate, and could be a catalyst for other potential acquirers to approach the company," Buttigieg said. He did not provide details on who exactly the possible suitors could be.

Shares of Pasadena, California-based Guidance Software were trading up 52 cents at $3.69 Tuesday afternoon on Nasdaq.

The company has lost almost 79 percent of its market value through Monday since its shares touched a 52-week high of $14.89 in November last year. (Editing by Pratish Narayanan)