AuthenTec, a developer of fingerprint and other biometric solutions, has announced its rejection of a bid by fellow biometrics developer UPEK for a merger, according to an Orlando Sentinel article. Officials from AuthenTec called the unsolicited proposed deal, which would have required the replacement of AuthenTec’s entire board of directors, “a highly dilutive and speculative transaction.”
Further, the UPEK bid came only a few days following a letter from AuthenTec alleging UPEK’s infringement on five AuthenTec owned patents.
Analysts expect that a deal detailing a merger between the two companies will be brokered at some point down the line, but due to stock reasons and subsequent proposals deemed unacceptable, they are not surprised by AuthenTec’s refusal of UPEKs bid.
Read the full story here.