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Vector sweetens bid for rest of Corel Add to ...

San Francisco-based private equity firm Vector Capital has increased its offer to buy out the other shareholders of Corel Corp. , the Ottawa-based software company best known for its line of graphics software.

Vector, which has owned a majority of Corel shares since 2003, announced Thursday it's now offering $4 (U.S.) per share for the stock it doesn't already own, up from the previous offer of $3.50 per share announced on Oct. 28.

Through an affiliate called Corel Holdings LP, Vector has made the offer conditional on it receiving a majority of the outstanding shares that it doesn't own. The offer expires Nov. 25.

It's the latest attempt by Vector to take Corel private for the second time in six years.

Following several years as a private company, Corel went public again in early 2006.

Vector then announced last year in March that it would buy out minority shareholders for $11 a share but withdrew the offer the following August

Prior to Vector's involvement, Corel had been one of Canada's best-known software companies, particularly under the leadership of its founder Michael Cowpland.

Upon returning to the public market, shares opened trading on April 26, 2006, at $15.85 but has almost always traded below that. On Thursday, following Vector's announcement, Corel traded at $4.03 on the Nasdaq market.



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