Conditional access specialists Kudelski has called an OpenTV shareholder “opportunistic”

02-11-2009


Conditional access specialists Kudelski has called an OpenTV shareholder “opportunistic” and has alleged Arcadia Capital has filed a “misleading and inaccurate letter” to OpenTV’s shareholders.

Kudelski is attempting to acquire all of the OpenTV stock it does not own in a $1.55 per share bid. Arcadia says the offer is inadequate.
Kudelski alleges 'inaccurate' OpenTV letter

Kudelski, in a note to investors on Nov 2, “encourages OpenTV shareholders to disregard inaccurate and misleading statements recently made by Arcadia and reserves its specific commentary on and rebuttals of such letter for a later time. Arcadia’s rhetoric clearly ignores the competitive challenges OpenTV is facing and the business fundamentals of the company.”


Kudelski reiterates its earlier statement that OpenTV, if left alone as it is, “is at serious risk due to the rapidly changing competitive landscape, and Kudelski believes that a material portion of OpenTV’s revenues within the current top 20 customer base are declining, with a continuing trend year-over-year in the future.”


Its letter also argues that $1.55 a share is a fair price given that six months ago Discovery Group sold 7m shares for an average sale price “below $1.55” despite advocating that a fair share price was $2-$2.50.


Kudelski says it "believes that OpenTV’s share price had been artificially inflated following Kudelski’s proposal by unrealistic value expectations and short term speculation among shareholders.”