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Patent licensing company Wi-LAN expected to offer more in takeover bid of Mosaid(Canadian Press DataFile Via Acquire Media NewsEdge) MONTREAL _ Patent licensing company Wi-LAN Inc. is expected to boost its $38 per share hostile takeover bid for of Mosaid Technologies Inc. to reflect the value of its rival's patents and track record, Mosaid institutional shareholders said Tuesday. Wi-LAN (TSX:WIN) has made a $480-million unsolicited takeover bid for Mosaid. "One could argue quite credibly that the future growth over the next two to three years could be as good or better from the Mosaid product portfolio than from Wi-LAN," said Mark Tredgett, managing partner of Toronto's Vantage Asset Management, whose firm holds Mosaid stock. Ottawa-based Mosaid has patents covering computer chips and short-range wireless technology (Wi-Fi) used in mobile phones, tablets and laptops. "It's an acquisition that makes a lot of sense but the market is telling you that they need to put a little bit more on the table to get this across the goal line," Tredgett said, adding that Mosaid is well run and has a "good track record." Shares in Mosaid (TSX:MSD) have been trading above Wi-LAN's offer. On Tuesday afternoon, Mosaid shares were down five cents at $39.10 on the Toronto Stock Exchange. Investment strategist Peter Imhof of Sprott Asset Management said a "reasonable" offer from Wi-LAN would be $42 or $43 per share, noting that Sprott holds shares in both companies. "In the end I don't want Wi-LAN to overpay and I don't want Mosaid not to get enough," he said. Combing the two companies would create a company with a market capitalization of $1.4 billion or so, he said. "I think it would be a great addition to the tech sector in Canada and maybe a go-to name for both Canadian and U.S. companies," Imhof said. Mosaid couldn't be reached for comment on Tuesday. The company will hold its board meeting Wednesday and is expected to deal with the hostile takeover bid. Together, Canada's two leading patent companies would have a portfolio of 4,200 patents covering mobile phones and laptops, video game consoles and digital TV receivers made by major technology companies like Apple, Sony and Panasonic Shares in Wi-LAN were up 24 cents, or 3.7 per cent, at $6.74 in afternoon trading. (c) 2011 The Canadian Press |