Plumtree Rejects Unsolicited Bid For Outstanding Shares

Plumtree Software Sutter Capital Management

Plumtree's board and senior management found the deal wouldn't benefit the company or its shareholders, said Plumtree CEO John Kunze in a statement.

Through a subsidiary, Sutter Opportunity Fund 2, Sutter offered Monday to purchase each Plumtree share for $2 in cash and $3 in the form of an 8 percent promissory note maturing in five years. The promissory notes would be secured by the assets of Plumtree, including a "good faith deposit" by Sutter of $1 million.

Plumtree went public June 4 raising $43 million with the sale of 5 million shares at $8.50 per share. Since then, the company's stock has traded from a high of $9.96 per share to a low of $2.40 per share. Plumtree closed yesterday at $3.35 per share, with 29,433,000 shares outstanding.

The company has made its mark in the industry as a pure-play portal vendor but has branched out during the past year by offering gadget suites and server products. In late August, Plumtree also announced its plans to partner with solution providers and other vendors to offer its first line-of-business solution, the Plumtree Portal for Employee Services, aimed at human resources departments.