McAfee close to acquisition end

The proposed buyout of Network General by McAfee is in its final stages.

McAfee and Network General are staging separate meetings to discussages. the proposed multi-million pound buyout by the anti-virus vendor, in the hope of finalising the acquisition next month.

The final ratification of the $1.3 billion deal, announced on 13 October, will depend on the approval of both businesses' shareholders. The main discussions will centre on stock issues and finalising the name of the company.

Rob Eatwell, European channel marketing manager at McAfee, confirmed that the two companies will meet in separate parts of California at the end of the year.

Eatwell said: 'We anticipate no problems at all and we have had no negative feedback, especially at Var level, because this acquisition would extend our product set.'

Under the terms of the agreement, McAfee will offer a stock swap at 0.4167 of a share for each Network General share. If the acquisition goes ahead, both companies will be renamed Network Associates.

But the US Stock Exchange appears to be unhappy about the acquisition.

McAfee's shares having fallen from 58 cents to a low of 41 and one eight since the October purchase date.

The difference in scale of the two companies is also magnified by disparity in revenue growth. Over a three-year period McAfee's turnover has grown by 135 per cent, and Network General's by 28 per cent.

Additionally, for one year to October, McAfee's stock had grown by 32 per cent, whereas Network General had experienced a slump of 15 per cent.

On completion of the agreement, McAfee president, chairman and CEO Bill Larson will head up the role of chairman and CEO.

Leslie Denend, president and chief executive of Network General, will assume the presidency of the merged operation.