IT group Micro Focus International has raised its offer for US software group Borland in an attempt to see off a rival bidder.
The UK business is offering $1.50 a share, up from $1.15 and higher than last week's $1.25 from an unnamed strategic buyer. George O'Connor at Panmure Gordon said:
"[The raised offer] values Borland at $133m, up from $88m previously. In the US we note that Borland ended last night at $1.29. A competitive bid needs to be $1.55. Certainly it is not over till the fat lady sings but given this price it feels like she is at least warbling. We are still happy with the strategic rationale supporting the deal and importantly the post acquisition integration is likely to occur in double quick time."
Micro Focus has moved 3.75p higher to 378.25p.
Elsewhere Avanti Communications has added 15p to 262p after the satellite operator raised £31.5m from new and existing institutional investors with a placing at 225p a share. The proceeds will be used to upgrade the launch of its broadband satellite to Arianespace, which should improve the timing and the success of the launch. Daniel Stewart analyst Mike Jeremy said:
"Avanti remains a unique solution to remote area broadband provision."
