Comverse backdating scandal

03-Mar-2020 05:52 by 10 Comments

Comverse backdating scandal

But some of the sources warned that the timing could also drag on for much longer.

Companies who have examined Comverse as a possible strategic add-on to their businesses have mainly been focused on Comverse Network Systems (CNS), which provides billing and value added services to telecommunications firms, these sources said. But it appears that Amdocs has dropped out of the process. Backdating is the practice of locking in financial gains by retroactively pricing option grants on days a company’s stock price was low, in effect increasing the value of the options. Alexander remains a fugitive and is fighting extradition to the United States in Namibian courts.

The company will also sell its stake in Starhome B. to Israeli private equity investment firm Fortissimo Capital.

Verint will buy back Comverse Technology’s 41 percent stake following the spin off and the sale of Starhome, eliminating the current holding company structure.

But many private equity firms have been working on Comverse, one of the sources said, so that may not be the case anymore. By acquiring the CNS unit, Oracle would be able to gain a footprint within telecommunications carriers.

The potential buyers remain in due diligence mode, the sources said.

Although Comverse disclosed over the summer that Goldman Sachs had been retained to explore options for the company, the sources said the investment bank has been working with Comverse for at least a year on these options.

Comverse may now be looking to bring in a separate investment bank that is not “transaction oriented,” the source close to the company said.“We would characterize this morning’s announcement as a clear positive for Verint and its investors, as it finally eliminates a major overhang on the name by removing Comverse’s majority ownership stake,” FBR Capital Markets analyst Daniel Ives wrote in a research note.Comverse Technology is also the holding company for billing software maker Comverse Network Systems, which it will spin off by October.We use cookies and browser capability checks to help us deliver our online services, including to learn if you enabled Flash for video or ad blocking.By using our website or by closing this message box, you agree to our use of browser capability checks, and to our use of cookies as described in our Cookie Policy. INITIAL_PROPS_HEADER = {"data":,"id":"header","context":{"nav Links Data":[,,,,,,,,,,,],"homepage Links Data":[,,,,,,],"customer Nav":{"user":null,"ads":,"urls":{"login Url":"https://com/login? Because of accounting issues associated with the options backdating scandal, Comverse has been unable to file with the Securities and Exchange Commission over the last four years.