TORONTO (Reuters) - Mosaid Technologies said on Monday it is talking to other potential suitors as it tries to fend off an unsolicited takeover offer from Wi-Lan Inc.
The company said it has been approached by or initiated talks with several third parties as it looks for a white knight to counter an unsolicited C$480 million cash offer from Wi-Lan, a fellow Canadian patent-holding company.
Mosaid expects to talk to more parties and will give them access to further information about their operations later this week, it said in a statement.
Mosaid recently bought wireless patents from Nokia and Microsoft, and has asked its investors for time to prove the worth of these patents.
Neither Mosaid nor Wi-Lan sells products making use of the patents they control. Their income comes from fees paid by companies that license the patents, based on a portion of their device sales.
Mosaid also said on Monday that Wi-Lan had made inaccurate statements last week regarding its “track record and the value of the core wireless portfolio” it purchased, which misled investors and complicated its efforts to maximize shareholder value.
“What we know for certain is that our shareholders should not be misled by Wi-Lan’s spin,” said Mosaid Chairman Carl Schlachte, repeating that investors should not tender to what he called Wi-Lan’s “inadequate and highly opportunistic offer.”
Also on Monday, Wi-Lan said it was expanding its management team, adding lawyers Robert Scott as vice-president for patent administration and Paul Lerner as a senior legal counsel who will establish a Wi-Lan office in Stamford, Connecticut.
Wi-Lan also said it raised an additional C$30 million via an over-allotment option granted to underwriters of a C$200 million debenture offering to help finance the bid for Mosaid.
Reporting by Alastair Sharp and Aftab Ahmed in Bangalore; editing by Rob Wilson
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