Micro Focus ups the ante for Borland

(By Philip Carnelley – Thursday 18th June 2009 8:00am). Micro Focus has increased its offer for US software tools company Borland to US$1.15 per share (see here), to see off the mysterious ‘financial buyer’ that threw its hat into the ring a couple of weeks ago (see Financial buyer stalks Micro Focus bid for Borland). The new bid values Borland at approximately US$88m vs $75m in its original offer, and has been accepted by Borland management and the 'financial buyer' has withdrawn.

The size of the increased offer looks like an attempt to close out any more bidders and close the deal quickly. As we said before Micro Focus’s original offer was quite generous, given the state of Borland’s business and we couldn’t see why anyone else would want to buy the company. Borland appears to be burning cash and will want to see the deal wrapped up quickly. Arguably, the counterbid was an unwelcome distraction (certainly for Micro Focus!), but Borland can’t be entirely unhappy given the result.