US CRM technology vendor Onyx Software has "unanimously rejected" an unsolicited bid for control of the company from Hong Kong-based business applications firm CDC Corporation.
Washington-based Onyx first received an unsolicited proposal from Nasdaq-listed CDC on 6 December 2005.
CDC - which supplies CRM, ERP and supply chain management software and operates the China.com Internet portal - said it was willing to contribute all its software assets plus cash of up to $50 million in exchange for the majority of Onyx's common stock.
In a statement released yesterday Steven Chan, acting CEO of CDC Corporation, says the merger would create an "integrated enterprise software company with approximately $250 million in revenues".
But following meetings to discuss the CDC proposal, Onyx says the offer is "not in the best interests of Onyx shareholders".
In a statement, Onxy claims CDC's software division assets are performing badly and says the proposed transaction would not produce a stronger combined entity. The vendor says the deal would "risk eroding value" for its shareholders as they would receive "no cash consideration and would face the prospect of limited liquidity".
Onyx says it is not looking to sell and considers the matter closed.