(Reuters) – Phoenix Technologies Ltd (PTEC.O: Quote, Profile, Research, Stock Buzz), which makes software that loads a computer’s operating system, said it received a higher bid of $150 million in cash, topping an earlier buyout offer by a private equity firm.
The proposal, received Wednesday, follows an offer by Los Angeles, California-based private equity firm Marlin Equity Partners to buy Phoenix Technologies for $135.1 million. [ID:nSGE67H0JH]
Milpitas, California-based Phoenix Technologies’ shares, which have jumped 42 percent since August 17, when it first said it received a buyout offer, rose 13 percent to touch a new 52-week high of $4.28.
About 2.8 million Phoenix Technologies’ shares changed hands by midday, more than twice its 25-day moving average.
The company’s board has determined that the latest offer meets conditions to enter into talks, Phoenix said in a regulatory filing.
The offer calls for Phoenix Technologies to maintain a minimum cash balance of $25.85 million at closing, down from $30 million it was required to keep as per the deal with Marlin Equity Partners.
The difference of $4.15 million is the termination fee that would be payable to Marlin Equity Partners, by Phoenix Technologies, it said.
Shares of the company were up 6 percent at $4 in midday trade Monday on Nasdaq. They touched a high of $4.28 earlier in the session.
(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Vyas Mohan)