Baan Co NV hopes to complete negotiations for a $75m loan facility from a consortium of banks next month, a deal that the company insists will leave it with enough cash to get through a difficult year. Chief executive Mary Coleman says she hopes the loan will not be needed and Baan CFO Jim Mooney claims the company has a wall of cash.
Fletcher International Limited, a US investment group, invested $75m in Baan at the end of 1998 (CI No 3,570) and agreed to put in up to $225m over the next three years. This investment was designed to end doubts over Baan’s viability. although Fletcher has the incentive of options to buy Baan shares at $16. They currently stand at $15.80, although last week’s unsubstantiated rumors that Microsoft was planning a bid for the company pushed them well over the $16 level (CI No 3,689).
While Baan has prepared investors for a couple of difficult quarters, it is now pushing hard on the consulting front and is preparing a big advertising campaign later in the year to increase awareness of the brand.
