United Video Drops Bid for Gemstar
United Video Satellite Group Inc. dropped its $2-billion cash bid for Gemstar International Group Ltd., and said it will develop its own interactive program guide for digital cable television. Pasadena-based Gemstar last week rejected the $45-a-share offer as too low and said it wanted to remain an independent developer of TV programming services. Tulsa, Okla.-based United Video, which is controlled by affiliates of Tele-Communications Inc., first made Gemstar an offer March 13, when the $45-per-share price represented a 50% premium over its then-current price of about $30. United Video didn’t disclose its offer until two weeks ago, when it said Gemstar hadn’t responded. United Video wanted to use Gemstar’s technology to develop an on-screen programming service under the TV Guide brand. United Video shares rose $1.31 to close at $33.75; Gemstar fell $1.06 to close at $38.69. Both trade on Nasdaq.