Gemstar International Group Ltd, the electronic program guide and consumer electronic application developer, has finally seen off the $2.8bn hostile bid from United Video Satellite Group Inc (UVSG). In a statement UVSG said that it was not prepared to increase its offer, and has therefore withdrawn its bid. The takeover attempt was first proposed privately to the Gemstar board on March 13, and Gemstar chief executive Henry Yuen held out, saying that the valuation was not high enough, even though the offer represented a sizeable premium over Gemstar’s share price. Eventually, after an escalating battle of words, Gemstar fended off UVSG with a combined announcement of the activation of its poison pill and an alliance with Microsoft Corp on July 14, just a week after the first news of the bid broke. On the news Gemstar shares were trading up $1.5 or 4.4% at $35.25 and UVSG was trading up $1.13 or 3.3% at $34.88.
