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Network Associates Plan to Buy McAffee Derailed Again
Security software specialist Network Associates (NYSE:NET) announced today that its offer to purchase McAfee.com (NASDAQ:MCAF) for $225 million had been withdrawn pending the resolution of NA accounting irregularies for the years 1999 and 2000.
A company spokesperson said the firm was "conducting an internal investigation under the direction of the Audit Committee of its Board of Directors to determine the scope and magnitude of these inaccuracies," adding that the statement for those years would be restated. The announcement drove down NA's stock price to about $20 from yesterday's $23.75 close.
Already the subject of an SEC investigation into other accounting irregularities, NA said it would keep the SEC staff informed of its investigation into this latest development
NA owns about 75% of McAfee, which it spun off three years ago. McAfee rejected NA's original offer of a stock exchange valued at $208 million. Both companies sell anti-virus softare and services.
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