Vector Raises Bid for Corel

(Reuters) – Shares of consumer software maker Corel Corp (CRE.TO)(CREL.O) jumped 13 percent on Thursday after the private-equity firm that owns the majority of the company raised its buyout offer for the business.

Vector Capital, through the Corel Holdings Limited Partnership that its affiliate controls, said it will now offer $4 a share, up from $3.50 a share previously.

Vector already holds 68.2 percent of the company’s shares, according to Thomson Reuters data.

“The decision to increase the offer price follows discussions between Vector Capital and the members of the board of directors of Corel designated to review the tender offer,” Vector said in a statement. It added it expects the directors will recommend that shareholders accept the deal.

Corel’s shares rose 49 Canadian cents to C$4.24 on the Toronto Stock Exchange.

Vector’s offer is scheduled to expire at midnight Eastern time Nov. 25, it said.

Ottawa-based Corel makes word, photo and video processing software, with brands that include WinZip, WordPerfect and CorelDraw.

Last month, it posted a drop in quarterly profit as its revenue slumped in what it described as a difficult economic environment.

($1=$1.05 Canadian) (Reporting by Wojtek Dabrowski; editing by Dave Zimmerman)