Updated from 11:03 a.m. EDT

Software maker

Corel

(CORL)

and

Inprise/Borland

(INPR)

called off their proposed merger Tuesday, citing "significant changes" since the

deal was reached in early February.

Reacting to the "significant changes" that triggered the breakup, Chief Executive Michael Cowpland said on a conference call with investors, "It's been over three months and the market moves very rapidly," hinting that the relative stock prices were a factor.

Corel, based in Ontario, Canada, had agreed to buy Inprise/Borland, a maker of Linux-based software, for stock in a move aimed at transforming itself into a one-stop shop for Linux software.

Investors reacted positively to the companies' decision to scrap the merger. Shares of Corel jumped 5/8, or 12% to 6 1/16 while Inrpise/Borland rose 17/32, or 9% to 6 3/8. (Corel closed up 19/32, or 11%, at 6 while Inprise/Borland closed up 3/8, or 6%, at 6 7/32.)

Since the merger was announced, Corel's stock has fallen about 70%, sharply reducing the value of the all-stock deal from its initial $2.44 billion. At the same time, shares of Inprise/Borland, based in Scotts Valley, Calif., have dropped more than 50%.

"Although we are disappointed the merger didn't proceed as planned, it hasn't changed our strategic focus," Cowpland, said in a statement.

"We're in the planning stages for our cost-savings plan," John Blaine, chief financial officer said during the conference call. Blaine said that the plan would save the troubled company $40 million annually but would not say where the savings would come from.

Throughout the conference call, Blaine continuously emphasized that the company "has cash in the bank."

Regarding the funding of its operations in the near term, Blaine said that Corel has had "many offers and we're analyzing these on their own merit."

Under the terms of the deal reached in early February, Inprise/Borland shareholders would have received 0.747 of a Corel share for each of their shares. At the time, that represented a 15% premium over Inprise/Borland's stock price. By Tuesday, however, Inprise/Borland was trading at a considerable premium to Corel's offer.