Network Associates tries again for McAfee.com

No doubt taking to heart the motto that if at first you don't succeed, try, try again, security software firm Network Associates Inc. (NAI) Monday said that it would try for a third time to acquire the 25 percent of McAfee.com Corp. that it does not already own.

McAfee.com, which offers managed security and antivirus services, is distinct from NAI's McAfee Security division.

Network Associates will offer 0.78 shares of NAI stock for each share of McAfee.com stock that it does not own, NAI, based in Santa Clara, California, said in statement. McAfee.com's board had approved a deal which would have merged the companies under those terms in April. That deal, however, was put on hold after the revelation of accounting irregularities forced NAI to restate its financial results for 1998, 1999 and 2000.

At the time, the company had been offering 0.78 shares of NAI stock for each outstanding share of McAfee.com. NAI had raised its offer from the 0.675 shares that it had originally offered after McAfee.com's board rejected that figureThe day after the McAfee.com board's rejection of the initial bid, NAI put the deal on hold, citing a U.S. Securities and Exchange Commission (SEC) investigation into the company. However, just three days later, NAI was again pursuing the buyout.

NAI's board decided to recommence the buyout attempt on Sunday, according to Kent Roberts, NAI executive vice president and chief counsel. The company had filed its restated financial results on Friday and was able to proceed now that it had accurate financial information on record, he said.

If the deal goes through, which Roberts expects it will, the new NAI will have "a coordinated offering into the consumer and small-to-medium (sized company) business. The customers in that space will be very pleased with that result," Roberts said.

Merging the two companies will increase the firm's focus, cut down on operational overhead and reduce brand confusion, Roberts said.

NAI expects to file its tender offer with the SEC on Tuesday, he said. Given a Tuesday filing, the tender offer could be accepted as early as July 30, Roberts said.

If the deal is struck at that date, NAI would perform a "short form merger" in which it would acquire the remaining 10 percent of McAfee.com, Roberts said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sam Costello

Computerworld
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?