i2 Technologies shareholders approve merger with JDA Software; board rejects new proposal

By Lisa Kerner

Charlotte, N.C., Nov. 6 - i2 Technologies, Inc. proceeded with its special meeting of stockholders on Thursday despite JDA Software Group, Inc.'s request to have the meeting adjourned.

JDA agreed in August to acquire i2, a Dallas supply chain company, for $346 million, or $14.86 per share.

More than 99% of i2's shares voted at the special meeting were cast in favor of the merger agreement, according to an i2 news release.

On Wednesday, JDA asked i2 to adjourn the meeting in order to negotiate a reduced purchase price.

According to JDA, due to the adverse effect of the continuing credit crisis, available credit terms would result in unacceptable risks and costs to the combined company.

JDA said that if the special meeting were held as planned, it would exercise its right under the merger agreement to take up to 60 days to attempt to arrange acceptable debt financing, a prior news release said.

By convening the special meeting, i2 said it fulfills its commitments under the merger agreement.

Following the special meeting, i2 said it received a written proposal from JDA to amend the common share consideration in the merger agreement "significantly below" $14.86 per share.

After reviewing JDA's latest proposal, i2's board of directors decided it is not in the best interest of i2's stockholders.

i2 said there can be no assurance that the companies will be able to close the transaction under the original merger agreement, despite i2's shareholder approval.

JDA is a Scottsdale, Ariz., software services provider.

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