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Optical/IP

Kudelski's Clincher

1:05 PM -- Following a sweetened bid and a position that OpenTV Corp. (Nasdaq: OPTV) has no shot at making a successful long-term go on its own, Kudelski Group said it has completed a tender offer to acquire 60 percent of the set-top middleware and apps firm it didn’t already own.

Kudelski said that now gives it 91 percent of the voting rights in OpenTV, which also makes interactive advertising systems and other interactive set-top applications.

Switzerland-based Kudelski originally offered $1.35 per share for the OpenTV shares it didn't own, but OpenTV labeled the bid as "inadequate" (See Kudelski Wants Its OpenTV and OpenTV Rejects Kudelski Bid.)

Kudelski later sweetened the offer to $1.55, a 17 percent add-on that swelled the value to $154 million, arguing that the elevated price provides a "superior value to OpenTV's future prospects." Kudelski also claimed OpenTV faced "R&D challenges" and would require a "significant amount of new investment" to remain competitive as a standalone, publicly traded firm. (See Kudelski's Persistence.)

The better offer and the questions raised about OpenTV's future evidently resonated with shareholders.

And Kudelski's not done. It's also launching a new offering period to acquire all the remaining outstanding Class A shares of OpenTV. That offering, also at $1.55 per share, is set to expire 5 p.m. ET Friday, Nov. 20.

— Jeff Baumgartner, Site Editor, Cable Digital News

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