Calix's (NYSE: CALX) move to acquire Occam Networks (Nasdaq: OCNW) has hit another snag as Occam's board has voted to delay a Jan. 27 vote until probably Feb. 22 because a court order that's requiring the company to give more information to shareholders.
After Occam agreed to be acquired by Petaluma, Calif.-based Calix for $171 million in cash and stock deal in September 2010, a group of shareholders that own 19 percent stake in the company, filed a complaint to prevent the deal from going forward.
In a letter sent to Occam's board chairman Steven Krausz, the shareholder trio of Michael Steinhardt, Herbert Chen, and Derek Sheeler, said "Occam's board cut what can only be called a lousy deal" and could not understand why they were selling the company "just as revenues are beginning to ramp."
Similar to Calix, one revenue source that Occam could benefit from are the various broadband projects that were awarded federal funding under the broadband stimulus program over the past year.
On Jan. 26, Occam received an order from the Delaware Court of Chancery that it said in a release requires it to provide shareholders "additional information and ... a deposition of Occam's financial advisor."
Although a preliminary count on Jan. 25 revealed that 63 percent of Occam's shareholders voted to approve the merger with Calix, shareholders have the option to change their vote after looking at more information about the deal.
For more:
- see the release
- Pacific Coast Business Times has this article
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