The Wyndcrest Holdings investment fund has raised its bid for Netro Corporation (Nasdaq:NTRO) to $247 million, or about $4.05 per share, after the company's board rejected an offer of $4.01.

Wyndcrest said it was disappointed that the broadband wireless technology provider had nixed its offer without so much as a debate, and suggested that the company engage in a friendly discussion on the matter.

Netro said on July 30 that the unsolicited Wyndcrest offer, of $4.01 per share, "did not reflect the true long-term value of Netro, and therefore was not in the best interests of Netro's stockholders".

Shareholders led by Robert Coates have been pressing the company to liquidate itself and hand over its money to shareholders, or alternatively, repurchase its shares.

Palm Beach, Florida-based Wyndcrest, which specializes in technology and digital entertainment holdings, wants to buy all Netro's outstanding share capital.

In a conference call upon publication of Netro's second-quarter results, shareholders were vexed to learn that the company had rejected Wyndcrest's initial offer without advising them. The whole issue only came up when an investor, Robert Chapman of Chapman Capital, raised the subject during the conference call.

The company said it had rejected the Wyndcrest offer because it comprised a discount versus the company's costs of disbandment. Netro suggested an alternative: to repurchase up to 23 million shares via a Dutch auction tender offer at $3.50 to $4 each. That would eat up about $100 million cash.

Wyndcrest's initial offer had been confidential. The fund evidently now feels in a sufficiently strong position, with shareholder backing, to make its offer public.

"We continue to believe our offer represents a full and fair price on the basis of public information," John Textor, Wyndcrest's chief executive, said. "Should we be given the opportunity to better understand both the continuing liabilities of the company, as well as the value of its technology in development, we would welcome the opportunity to provide even more near-term, and possibly long-term, value to the shareholders."

Without joining the chorus of Netro's detractors, Textor added, he found it odd that the company had not yet digested the essence of being a public company: The shareholders rule.

Textor said he was confident that the new offer would meet with the approval of a majority of shareholders. Wyndcrest's goal is to reshape Netro's business model, Textor declared.