(Reuters) – SonicWall Inc (SNWL.O) said the third-party bidder that offered to acquire the IT security company for $12 a share in cash no longer intended to pursue the deal.
Shares of SonicWall, which provides secure Internet access to both wired and wireless broadband customers, fell 3 percent in trading before the bell Tuesday.
In a regulatory filing last month, SonicWall disclosed it had received an unsolicited non-binding proposal from a privately held competitor, topping an earlier bid from private equity firm Thoma Bravo. [ID:nSGE65L0KH]
SonicWall said it still recommends that its shareholders approve the merger agreement with Thoma Bravo, which has offered to buy the company for $11.50 a share.
Shares of Sunnyvale, California-based SonicWall were down at $11.41 in pre-market trade. They closed at $11.78 Friday on Nasdaq. (Reporting by Sayantani Ghosh in Bangalore; Editing by Anne Pallivathuckal)