IBM is seeking to force ouster of Lotus board; move puts intense pressure on the software maker to negotiate sale pact

Article Abstract:

IBM is planning to try and force the dismissal of Lotus' executive board of directors in an effort to put pressure on the board to negotiate a sale of the company. The move is part of an aggressive hostile takeover in which IBM is proposing to purchase the company for $3.3 billion. Analysts say that between the hostile bid, the action to remove directors and a lawsuit filed against Lotus, the smaller company is faced with almost impossible odds in avoiding a takeover. Lotus is seeking a friendly investor as a last resort, talking with companies such as AT&T and HP. Silicon Valley officials say that it is unlikely that any other company will be interested in purchasing Lotus in order to save the company from a hostile takeover. Most companies already have close ties to Lotus rival Microsoft and would not risk that relationship for a takeover.

Computer Software, Software Publishers, Mergers, acquisitions and divestments, International Business Machines Corp., IBM, Company Acquisition Merger

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Lotus lowers price of 1-2-3 for Windows

Article Abstract:

Lotus Development Corp lowers the price of its Lotus 1-2-3 for Windows spreadsheet software package from $595 to $495. While it is unlikely that the price reduction will result in a street price significantly lower than the current $350 to $400 range, it demonstrates that Lotus is concerned about its market share for products based on Microsoft Corp's Windows graphical user interface (GUI). While industry analysts believe that Lotus will remain a leader in the spreadsheet software market, they assert that Lotus' market share will dip below 50 percent for the first time. It is predicted that Microsoft will increase its market share to 43 percent from its current level of 36 percent. Lotus has been the leading spreadsheet vendor since 1983, but was slow to introduce a package that was compatible with Windows.

Computer integrated systems design, Product information, Prices and rates, Market share, Spreadsheets, Spreadsheet software, Price cutting, Software Packages, Competition, Lotus 1-2-3 for Windows (Spreadsheet software)

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