Entrust investor to vote against proposed merger with equity firm

By Lisa Kerner

Charlotte, N.C., June 18 - Entrust, Inc. investor Arnhold and S. Bleichroeder Advisers, LLC said it will vote its shares against the company's merger agreement with Thoma Bravo, LLC at Entrust's special meeting on July 10.

The investor, in a Thursday letter to fellow Entrust shareholders, said the case by the board of directors for selling Entrust now is "unconvincing."

"The company has ample cash on hand, a sustainable and robust government line of business, and several highly regarded products with potential to add growth to the business model in the near term," the letter said.

In addition, the investor is concerned that the Entrust board's vote on the Thoma Bravo deal is not unanimous.

Arnhold and S. Bleichroeder Advisers beneficially owns 3.2 million shares, or 5.2%, of Entrust common stock. It said that assuming the record date remains May 11, it is eligible to vote 2 million of those shares.

Entrust announced in April that it agreed to be acquired by an affiliate of Thoma Bravo for $1.85 per share.

As previously reported, the transaction has a total equity value of $114 million.

Entrust's software and associated services let businesses and governments conduct transactions over wired and wireless networks, including the internet. The company is located in Addison, Texas.

Thoma Bravo is a private equity investment firm with offices in Chicago and San Francisco.

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