Arcadia Opposes Kudelski's Bid For OpenTV

GREAT NECK, N.Y. (AP) — Arcadia Capital Advisors LLC told fellow OpenTV Corp. shareholders on Friday that they should not tender their shares to Kudelski Group, saying its offer is too low.

Kudelski Group made an offer Oct. 5 to buy all outstanding OpenTV shares for $1.55 apiece. OpenTV, based in San Francisco, makes software for digital TV content creation and delivery.

Arcadia, an investor in OpenTV, said it will not tender the shares it owns and believes Kudelski will raise its bid and "we will see more value over the next few months."

Arcadia Managing Director Richard Rofe said the investor believes the offer is "coercive and has created unfounded fears about Kudelski's ultimate plans to delist OpenTV's stock or not complete the full acquisition of Open TV in a timely manner or at a fair price."

Arcadia, a New York investment firm, made its complaint public in an open letter filed Friday with the Securities and Exchange Commission.

Kudelski Group disputed Arcadia's statement that the value of the offer is too low.

"OpenTV's ability to create shareholder value as a standalone public company is at serious risk due to the rapidly changing competitive landscape," Kudelski said in a statement issued Friday. OpenTV's revenue from its top 20 customers is declining and will continue to fall, Kudelski said.

OpenTV shares closed unchanged Friday at $1.54.