Corel Seeks Buyer

Struggling Canadian software firm Corel Corp. is actively trying to find a buyer for its business and has signed a non-disclosure and standstill agreement with San Francisco-based Vector Capital that lets Vector investigate a takeover bid for the struggling software maker.

But Corel can still try and find alternative buyers and pursue strategic alternatives for its business, and so it has appointed Canadian investment bank CIBC World Markets to help it in this regard, the company said in a statement on Monday.

This announcement follows hot on the heels of Microsoft Corp.'s sale to Vector Capital of the 22.89 million Corel shares (a 24.6 percent stake in the company) it bought in October 2000. Microsoft took a loss of more than $100 million on the sale of the shares, which it paid $135 million for in October 2000 and this month sold to Vector for some $13 million.

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