Citing difficulty in arranging the financing necessary to acquire i2 Technologies, JDA Software today asked i2 to postpone Thursday’s scheduled shareholder meeting, during which i2’s stakeholders were slated to vote on the proposed buyout.
The adjournment would allow JDA time to attempt to negotiate a reduced purchase price, JDA said in a statement today. If, instead, the original offer of $346 million is approved tomorrow as scheduled, JDA said, “available credit terms would result in unacceptable risks and costs to the combined company.”
“We continue to believe in the strategic benefits that a merger with i2 would provide,” JDA CEO Hamish Brewer said in the statement. “We are disappointed that the current financial credit market and economic environment is impacting our plans to close this acquisition this week.”
In the event that i2 proceeds with its shareholder meeting as planned, JDA said it will exercise its discretionary right under the merger agreement to take up to 60 days to arrange financing. According to the terms of the agreement, if the transaction does not close by Feb. 10, 2009, it can be terminated at the request of either party.