Corel prepared to accept Vector takeover offer Directors also willing to ponder any better bid San Francisco firm still examining company's books. JOHN WARD CANADIAN PRESS OTTAWA Most of the directors of Corel Corp. are prepared to accept a takeover offer from U.S.-based Vector Capital unless a better bid comes up, chairman James Baillie told the software company's shareholders yesterday. "If they come in with an offer of $1.10 (U.S.) or more (per share), we have not succeeded in finding a better offer and we get an opinion from our financial advisers that that offer is financially fair to shareholders, then we will support it," he said after what may have been Corel's last annual meeting. He noted that members of the board are obligated to take into account the best interests of the shareholders. "At this premium level, we can't disregard it." He said $1.10 a share is 50 per cent above the price of Corel stock at the time Vector advanced its proposal. One shareholder in the audience said he'd rather hang on. "I'd prefer to stay to the end of the movie, rather than take a partial refund 20 minutes before the end." More than two weeks after announcing Corel is for sale, Baillie said no other suitor has come forward for the maker of CorelDraw graphics software and WordPerfect office programs for personal computers. Corel and Vector announced a standstill agreement March 24 that gives the San Francisco investment firm 30 days to have a closer look at the Ottawa software company before deciding whether to make a formal offer. "They are still doing their due diligence," Baillie said. Vector, already a major shareholder since buying Microsoft Corp.'s stake in Corel last month, agreed that if it makes a further takeover bid for Corel in the next six months it will be for at least $1a share. Corel's directors have said they would support an offer of $1.10 or more from Vector, but were free to look for another suitor. Even as Baillie spoke of the possible sale of the software firm, president and chief executive officer Derek J. Burney was forecasting a profit in the financial year ending Nov. 30. Two weeks ago, Corel reported a loss of $574,000 (U.S.) in its first quarter an improvement from a year-earlier loss of $3.15 million. Burney blamed sagging sales of CorelDraw and WordPerfect, which he said were off 10 per cent and 17 per cent respectively. Corel shares closed unchanged at $1.30 (Canadian) on the Toronto Stock Exchange.

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