Kudelski criticises OpenTV’s acquisition rejection

Swiss-based technology firm Kudelski said it was “disappointed” by the decision made by a committee set up by interactive TV specialist OpenTV to reject its offer to acquire the company.

Kudelski, which already owns a significant stake in OpenTV, made an offer worth US$127m (€90m), or US$1.35 per share, in February. However, the Special Committee created by OpenTV’s board rejected the offer, describing it as “inadequate and not in the best interests of the company and its stockholders”.

In response, Kudelski said it believed the rejection of its offer was against the best interests of OpenTV’s minority shareholders, customers, partners and employees because of challenges faced by the company. It said the committee’s assessment relied “exclusively on an overly optimistic and unrealistic outlook on both OpenTV’s future business prospects and the business as a whole”, adding that market trends towards next-generation set-top box software would result in a “significant decrease of OpenTV’s business volumes”. It said it would work “aggressively to mitigate these risks” and that OpenTV should increase its investment in next-generation solutions, including through acquisitions if necessary.