Executives of JDA Software Group Inc, the Phoenix, Arizona-based provider of retail sales software and services, this week urged its shareholders to reject an unsolicited bid to buy shares in the firm, dismissing the offer as inadequate. In an official statement Wednesday, the company’s management team said it had learnt that IG Holdings had made an offer to purchase up to 2% of the outstanding shares of common stock of JDA. But the offer, at $7, is a significant discount to the closing price of its shares yesterday of $8.50. Typically, when a third party makes a bid to buy a company it approaches the firm’s board first. But in an unsolicited offer, the company making the offer goes straight to the shareholders and avoids the board altogether. IG Holdings is not affiliated with JDA or any of its officers and/or directors, and did not contact JDA prior to the commencement of the offer, the company said. Last week, JDA said it would make a loss in its forth quarter, coming up at the end of January. Preliminary financial results for the fourth quarter show revenues up 10% in the range of $33m to $34m, but license revenues will be about $7.5m, down from $14.6m in the year-ago quarter, with earnings per share ranging from a loss of $0.08 to a loss of $0.11. JDA will announce its final results for the quarter and year on January 28.
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