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  Corel shareholders group going to court to block Vector takeover bid
Time: 08:57 EST/13:57 GMT | News Source: E-Mail | Posted By: Brian Kvalheim

A group of Corel shareholders will ask an Ontario court this week to block a $120-million US takeover by Vector Capital, claiming Corel's management and board were in a conflict of interest when they agreed to the deal. The shareholders group, which calls itself Corel Rescue, argues Vector's offer of $1.05 US per share is too low and that, with $75 million US in cash and no debt, the Ottawa software company has enough resources to remain independent. The group also claims Corel's board of directors and its senior management hasn't acted in the best interest of most of the company's shareholders who are comprised largely of individuals with relatively small holdings. The deal needs approval from the Ontario Superior Court in addition to shareholder approval. Vector, a San Francisco-based venture capital firm which includes Microsoft co-founder Paul Allan among its backers, became Corel's largest shareholder when it bought nearly 23 million class A shares from Microsoft in March.

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