Openwave Can't Find Buyer

Openwave (OPWV Quote) dropped 9% in after-hours trading as the communications outfit said it whiffed in its bid to find a buyer.

Openwave said it had talks over the last three months with "a number of interested parties," but "no party ultimately emerged from the strategic process with a binding proposal to acquire the company." As a result, the board "directed management to focus its energies on implementation of the company's stand-alone plan."

The company also rejected last month's take-under bid from big shareholder Harbinger Capital.

On top of all that, the Redwood City, Calif., telecom software company said it will pay out a $1.20-a-share special dividend as a means of returning $100 million to shareholders. Openwave additionally set plans to cut 20% of its staff.

The moves come just over a week after Harbinger proposed to boost its stake in the company from 13% to over 62% by buying half the company's shares at $8.30 a share -- a 4% discount to the prevailing stock price.

On Monday, Openwave called the Harbinger offer "inherently coercive" and "inadequate."

Shares fell 86 cents late Monday to $9.51.