Investors Punish Openwave Shares
A decision to stand alone doesn't pay off Tuesday.
Investors hammered shares of
Openwave
(OPWV)
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.
