Hedge Fund Surrenders on Openwave Buyout

It doesn't get its 40 million tendered shares.

Author:: Ivy Lessner
Publish date:: Jun 22, 2007 10:52 AM EDT

In the end, a number of

Openwave Systems

(OPWV)

shareholders just weren't swayed.

Hedge fund

Harbinger Capital Partners

gave up on its tender offer for the Redwood City, Calif.-based software company on Friday, announcing that about 28 million shares, or 40% of shares not in Harbinger's -- or Openwave's control -- had been offered.

Harbinger had previously said 40.4 million tendered shares would be needed for Harbinger to take control. Harbinger has been critical of management's performance and the board's response.

Harbinger said it will not take up the shares tendered. It had offered $8.30 a share.

With the deal officially aborted, investors sold off shares; Openwave was recently off more than 6% to $6.55.

Openwave develops communications server software, such as mobile gateways.