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Proxim, Netopia Terminate Merger

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Proxim, Netopia Terminate Merger -- Due to the current stock market conditions (I first wrote "doldrums," but the reality is more like rounding Cape Horn in rough weather), Proxim and Netopia announced they are terminating their merger agreement without payment of termination fees (see "Proxim Reunites Farallon and Netopia" in TidBITS-565). Some of those "market conditions" were Proxim's stock dropping by 40 percent after Intel announced that it would support 802.11b wireless Ethernet rather than the Proxim-backed HomeRF standard (Proxim also makes 802.11b-compatible networking gear). The drop in Proxim's stock price would have cut the purchase price for Netopia from about $223 million to about $67 million. The two companies say they still plan to work together on integrating wireless networking technologies into broadband access products. [ACE]

<http://www.proxim.com/inside/pressroom/2001pr/ termination.shtml>
<http://db.tidbits.com/article/06283>

 

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