United Video withdraws bid
Gemstar fights off unsolicited $2.8 bill takeover offer
Gemstar's board of directors last week rejected United Video's unsolicited buyout offer, saying the $45 per share offer undervalued the Pasadena-based high-tech firm. Also, the Gemstar board approved a "poison pill" defense that had the effect of flooding the market with new Gemstar shares, forcing United Video to pony up significantly more coin or withdraw the offer.
United Video, which is in the process of acquiring TV Guide from News Corp., had hoped to merge with Gemstar to become the dominant player in the emerging market for on-screen program guides.
A unit of cable giant Tele-Communications Inc., United Video also had hoped a merger would settle its drawn-out legal battle with Gemstar over copyrights relating to their respective patents for program guide technology. A federal judge in Tulsa, Okla., is expected to issue a ruling on the matter this fall.
"We look forward to a decision that confirms our position that the (Gemstar) patent at issue in the case is invalid and unenforceable and that we have not infringed it," Gary Howard, chairman and CEO of United Video, said in a statement issued Wednesday.
