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Network Associates ups offer for McAfee.com

Security software developer Network Associates (NAI) has made a revised offer to McAfee.com for the 25% of the company it does not already own, after having its last bid to take over the company rejected last month.

NAI hasincreased the value of its offer for each outstanding share of McAfee.com common stock to $15.43 (£10.08) based on the closing price of NAI common stock on 12 August. The new deal now offers 0.675 of a share of NAI common stock plus $8 (£5.23) in cash for each outstanding share of McAfee.com common stock.

The company has also extended the expiry date of the offer until midnight, Eastern Time, on 12 September, unless further extended, it said.

NAI had previously offered to exchange .90 of an NAI share for each outstanding share of McAfee.com. That offer was rejected when only 4% of eligible McAfee.com's shares were tendered into the offer by the 31 July deadline. NAI must either receive a majority of votes or increase its McAfee.com stake from 75% to 90% in order to make a deal between the two companies legally binding.

McAfee.com's directors had urged shareholders to reject the overture by NAI, claiming that NAI's bid for McAfee.com "significantly undervalued" the company. Refusing to be deterred by the rebuff, NAI immediately extended the deadline for its offer to 13 August.

NAI has repeatedly attempted to reabsorb the subscription services and hosted applications provider, which it spun out as a separate company in 1999, in an effort to strengthen its own offerings for the consumer and small-to-medium business market. NAI also believes the move would eliminate current customer confusion over the difference between McAfee.com and NAI's McAfee Security product group.

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