Lotus's rich price: cash and freedom, too

Article Abstract:

Analysts are questioning the strength and stability of IBM's deal to acquire Lotus Development Corp for a price estimated to be around $3.5 billion. IBM offered Lotus more money than the original deal and also promised the company more independence in order to make the deal more attractive. In the short term, these decisions are being praised as a good way to keep Lotus employees happy. But analysts worry that the promise of independence could lead to conflicts between the two companies in the long term. There is also concern that IBM's efforts to integrate Lotus Notes into its own product line will cause strife between the sales and marketing staffs of the two companies. The Lotus Notes workgroup software is the primary reason that IBM was willing to pay such a high price for Lotus.

Prepackaged software, Computer Software, Software Publishers, Software, Work group computing, Workgroup software, Workgroup computing, Groupware

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I.B.M. seeks to buy software maker in $3.3 billion bid; Lotus is resisting; with first hostile offer, computer giant tries to regain PC lead

Article Abstract:

IBM made a surprise hostile bid of $3.3 billion to acquire Lotus Development Corp in a deal that would be the highest amount ever paid for a software company. The proposal surprised analysts and Lotus officials and Wall Street reacted with an increase in Lotus' stock price of $28.9 per share to $61.4. If IBM is successful in its effort to acquire Lotus, the acquisition will allow the computer company to recapture some of its lost momentum in the computer industry. IBM was one of the creators of the computer industry and is still one of the largest computer companies in the world, but has given up its lead in the personal computer market to Compaq. Lotus is resisting IBM's efforts to acquire the company and the government may also voice concern about possible antitrust violations.

Electronic computers, Computer Systems

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Similar abstracts:

• Abstracts: Chiefs of Lotus and I.B.M. discuss bid; software maker still tries to avoid takeover. Arbitragers have a field day with I.B.M.'s bid for Lotus

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