Thursday, December 28, 2006

Harbinger Capital Seeks to Elect Two to Openwave (OPWV) Board

In a 13D filing on Openwave Systems, Inc. (Nasdaq: OPWV), Harbinger Capital and related funds disclosed a 10.6% stake (10 million shares) in the company and the filing of preliminary proxy material in order to elect James L. Zucco and Andrew J. Breen to the Board of Directors. The firm changed their filing status from 13G to 13D, indicating their new activist stance with the investment.

If Mr. Zucco and Mr. Breen were elected they plan to propose (i) establishing a unified and focused vision for the company's overall product offering with the company's most strategic core products; (ii) phasing-out non-performing product lines to reduce costs; (iii) immediately reducing quarterly operating expenses to approximately $50 million and (iv) immediately commencing a significant share repurchase program.

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