Investors Punish Openwave Shares

A decision to stand alone doesn't pay off Tuesday.
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Investors hammered shares of



Tuesday, after the company's turnabout on seeking a buyout sparked downgrades by at least four analysts.

Three of those ratings put the stock at sell or underperform, following the telecom-software developer's disclosure Monday that the Redwood City, Calif.-based company had rejected a partial tender offer by Harbinger Capital and had been

unable to find another buyer.

As a result, Openwave said its board "directed management to focus its energies on implementation of the company's stand-alone plan."

The stock was recently down $1.75, or 16.8%, to $8.62 on heavy volume.

Openwave was downgraded by CIBC World Markets, J.P. Morgan, ICAP and Needham & Co.