Microsoft Corp’s $130m bid to take over Swedish software developer Sendit AB (CI No 3,660) has received a significant boost with the acceptance of its terms by insurance group Skandia AB, which holds a 20.9% stake in the company.
There was some concern around the market in mid-month when Skandia Asset Management, an investment fund belonging to the insurance group, doubled its stake in Sendit from the 10% it had traditionally held. The move came a month after Microsoft had made its offer to acquire the Stockholm-based software house, leading to speculation that Skandia might be acting to block the US company’s plans. Now, however, the insurer has announced that ‘the deal is motivated by industrial considerations,’ adding that it intends to accept Microsoft’s offer.
Sendit develops mobile internet application server platforms for GSM phone networks, a segment Microsoft has defined as one of its priority markets for the next few years, as cellular phones are upgraded to handle data and video as well as voice traffic.
