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Once expecting a buyout that would have valued their stock at $2, investors in ACTV Inc. are now staring at a significantly reduced share price only shortly after the company agreed to merge with OpenTV Corp.
"It was a classic bait-and-switch," said Fred Barthel, who owns 50,000 shares of ACTV. "The carrot was dangled before shareholders' noses and pulled away each time."
The deal calls for ACTV shareholders to receive 0.733 of a share of OpenTV stock for each share of ACTV stock. With Mountain View, Calif.-based OpenTV trading at $1.02 per share Wednesday, Oct. 9, ACTV's stock under the deal is now valued at 75 cents, a premium to its closing share price Wednesday of 50 cents. The deal is valued at about $35 million.
ACTV's technology allows viewers to make "instant changes" to a television program, the company said. For example, Nascar fans may switch between multiple in-car camera feeds.
Negotiations of the transaction were rocky. On May 8, New York- based ACTV announced a letter of agreement with Englewood, Colo.- based Liberty Media Corp. to purchase its remaining 84% stake for $2 per share in cash or stock in Liberty or a Liberty subsidiary. ACTV and Liberty in early July amended the purchase price to $1.65 per share.
After repeatedly extending the negotiating period, ACTV announced...