InterDigital suitor trying to build consortium

This article is provided to FT.com readers by dealReporter—a news service focused on providing insightful intelligence on event driven situations to investors. www.dealreporter.com

--------------------------------------------------------------------------------

InterDigital (NASDAQ: IDCC) received an expression of interest from a suitor who is now trying to form a consortium, a person briefed on the situation told dealReporter.

The person said that the suitor is now working as the lead with other interested parties to build a consortium. If successful, the lead consortium member will attract parties that will add to the initial offer, the person said.

Yesterday, 26 September, this news service reported that InterDigital had received offers in the last couple of days that in some cases were in the USD 1bn to USD 2bn range. The company has around USD 500m in net cash and it is unclear if those offers factored in the cash.

The person could not say how many parties will make up the consortium since the suitor is still trying to create it. Also, the percentage of assets each member would hold could not be determined.

The person said interest is coming from companies located in a number of different countries. This news service reported yesterday that one of the offers InterDigital received was from an Asian suitor, citing a source briefed on the matter.

Other consortia are in the process of being formed and evaluating whether to move forward with an offer, the person claimed.

The person called the process active but also said that there are no clear milestones that would trigger the next event in the process. The person said that the expressions of interest were not made as part of first round bids but came about as an on-going process.

There is no assurance that a deal will be struck and the company continues to evaluate a number of strategic options, the person said. He added though that the board is encouraged by the level of interest.

InterDigital, the King of Prussia, Pennsylvania-based intellectual property company, said in a press release last night that it was exploring a complete sale of the company or asset sales to one buyer or a consortium of buyers.

In recent days the company has been seeking informal advice from financial advisors in Silicon Valley about options it could pursue beyond a sale of the whole company, said a source familiar with the matter. Barclays Capital and Evercore are InterDigital’s announced advisors.

--------------------------------------------------------------------------------

For more information or to inquire about a trial please email sales@dealreporter.com or call Europe/EEMEA: +44 (0)20 7059 6160 Americas: +1 212 686-3076 Asia-Pacific: +852 2158 9714