Wi-Lan Inc. (WIN), the patent holder that suffered a setback last week when Apple Inc. (AAPL) won an infringement trial, said it will explore “strategic alternatives” including a possible sale of the company.
Wi-Lan will consider changes to dividend policy or other forms of return of capital, as well as “the acquisition or disposition of assets, joint ventures, the sale of the company, alternative operating models or continuing with the current business plan,” it said today in a statement.
Wi-Lan shares have plunged about 24 percent in Canada since Apple won a patent-infringement trial on Oct. 23 and fended off a demand for $248 million in royalties for wireless technology used in mobile devices. Wi-Lan holds about 3,000 patents and relies on royalty payments for all of its sales.
Canaccord Genuity is serving as financial adviser to Wi-Lan and Norton Rose Fulbright Canada LLP is serving as legal adviser, the Ottawa-based company said. Wi-Lan hasn’t set a timetable for completing the review initiated by the board, it said.
“The company strongly believes in its current business strategy but does not believe that its current share price accurately reflects its strong balance sheet, the value of its signed license agreements, its business prospects or the residual value of its broad intellectual property portfolio,” it said.
To contact the reporter on this story: David Risser in London at drisser@bloomberg.net
To contact the editor responsible for this story: Robert Valpuesta at rvalpuesta@bloomberg.net
