De fusie tussen S3 en Diamond lijkt voorlopig niet door te kunnen gaan omdat er aan de kant van Diamond onvoldoende steun kan worden bereikt onder de aandeelhouders. Een deel van hen is van mening dat de Diamond aandelen in deze deal ondergewaardeerd worden:
Sept. 20, 1999--Diamond Multimedia Systems, Inc. (NasdaqIMD - news) a leader in PC multimedia and Internet connectivity, today announced that the special meeting of shareholders today called to approve the acquisition of Diamond Multimedia by S3 Incorporated (Nasdaq:SIII - news) has been adjourned.
The Diamond meeting has been adjourned until Thursday, Sept. 23, 1999 at 4:00 p.m. (PDT) at Diamond's offices at 2880 Junction Avenue, San Jose, CA 95134. The meeting was adjourned for the purpose of soliciting additional votes for approval of the merger. The approval of the merger requires a vote of a majority of the outstanding shares of Diamond Multimedia. The companies expect to press forward with their plans to integrate their businesses after the merger and do not believe that this postponement will have any material operational or financial impact.
"Due to the logistical challenges of communicating with our widespread investor base, we have not received enough proxy votes by close of business, September 17," said Bill Schroeder, president and chief executive officer of Diamond Multimedia. "Of the votes we have received, a significant majority are in favor of the merger. While we believe that Diamond's shareholders recognize the upside to the merger, we are concerned that many of them may not realize how important their individual votes are to moving this merger forward."
"Given Diamond's current financial constraints, we believe that partnering with S3 is an essential step toward ensuring we have the resources to pursue our long-term strategies," added Schroeder. "We strongly encourage everyone to vote as soon as possible by calling the toll-free number provided in their proxy materials, their broker, or their broker's proxy department. If shareholders have not yet received or have misplaced their proxy, they should call their broker or their broker's proxy department to request the necessary documents."