Nuance criticizes Zi for rebuffing takeover bid

Nuance Communications Inc., which makes speech recognition software, slammed Zi Corp.’s management today for rebuffing its $40.4 million unsolicited takeover offer, calling the decision by Zi’s board ‘‘perplexing and inappropriate’’ because of the significant premium Nuance offered.

Burlington-based Nuance, whose software is found in cars, dictation systems, and consumer electronics, made its all-cash, 80-cents-per-share bid last week — a 150 percent premium over Zi’s closing stock price the day before the offer was announced.

Zi is a Canadian firm whose software helps people send text messages and e-mails by predicting their typing habits and correcting commonly misspelled words.

Zi said it wouldn’t negotiate with Nuance over a potential deal.

Zi reported a wider quarterly loss of $1.5 million, or 3 cents per share, as revenue slumped 22 percent to $2.7 million.
(AP)