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Comverse seeks to sell 10% of holdings in Verint

19 Jul, 2010 20:24
שלח תגובה במיילYael Gruntman

Comverse hopes to raise $60 million for the shares in the intelligence solutions company.

Comverse Technology Inc. (Nasdaq:CMVT) wants to dilute its holdings in its subsidiary Verint Systems Inc. (Nasdaq:VRNT). According to a request Comverse filed with the US Securities and Exchange Commission (SEC), it is prepared to sell 10% of the 28 million shares it holds in intelligence solutions company Verint, which is a 66% holding in the company.

Comverse's shares recommenced trading on Nasdaq just two weeks ago after reaching agreement with the SEC. Verint's shares fell 7.41% on over-the-counter trading today to $20.37 per share, giving a market cap of $669 million, thus Comverse would receive about $60 million for its shares.

The belief is that Comverse is interested in realizing part of its holding in Verint due to a worsening of its financial situation. Because of its backdating scandal, Comverse has not filed full financial reports for several years, and the company only recently again postponed reporting until the end of August. Comverse's share has lost 20% since the beginning of the year and two thirds of its value since it moved from trading on Nasdaq to the pink sheets.

Comverse recently reached a compromise over the class action suit against it and will pay $165 million with former CEO Kobi Alexander himself paying $60 million.

Comverse share was down 0.11% in morning trading today to $7.60.

Published by Globes, Israel business news - www.globes-online.com - on July 19, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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