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Online video search firm Blinkx, which is publicly traded on the AIM market, has dropped its public bid to acquire pay-per-click ad network MIVA. The London- and San Francisco-based Blinkx had offered $1.20 per share, valuing Miva at $41.13 million, a 54 percent premium over its early August stock price…Miva board rejected it outright then, saying the bid wasn’t up to the mark.
This morning, in a statement, Blinkx explained its decision to withdraw: “The large premium blinkx offered in our initial proposal is even more significant today in light of MIVA’s second quarter earnings miss, subsequent downward revision of annual guidance, and public disclosure related to restructuring of the Media EU business. By choosing not to engage in substantive discussions in any material respect and an agreement with blinkx, MIVA Board and management in our view have failed to give due consideration to a transaction that had a uniquely attractive opportunity for MIVA shareholders, particularly in light of several challenges MIVA faces in the near term.” Some more details in the release.