David Lee and Wearne Brothers Pte Ltd of Singapore are determined to take Qume Corp private and now say Qume’s board has approved and the company has signed an agreement to be acquired by New Qume Corp, a company formed by Mr Lee, Wearne and some other investors for $7.25 a share cash: shareholders will be asked to approve the deal in September – provided the investor group of sufficient financing to complete the merger, and the merger agreement specifically permits Qume to solicit other proposals to acquire the company, subject to the payment of a break-up fee of $1m if the company terminates the merger agreement to accept a more favourable acquisition proposal which sounds like a poison pill, although it is not payable if anyone comes up with a better offer before the necessary New Qume Corp financing is in place.
