Verisign Takeover Rumours Squelched

Rumours of a takeover of Verisign in recent days receded dramatically with the announcement that the company’s chief financial officer Brian Robins was leaving “to pursue new opportunities outside of Verisign” the company announced.

Rumours of a takeover of Verisign in recent days receded dramatically with the announcement that the company’s chief financial officer Brian Robins was leaving “to pursue new opportunities outside of Verisign” the company announced.

The announcement saw Verisign’s share price fall the most in the past six years with Bloomberg claiming the announcement squelched speculation that it was poised to be acquired.

“The shares dropped $4.88, or 14 percent, to $29.03 at 4 p.m. New York time on the Nasdaq Stock Market, for the biggest plunge since July 2005,” reported Bloomberg. “The stock had jumped 13 percent this week before today after the company canceled appearances at two conferences, one by Robins, fueling rumors that VeriSign was in talks to be bought.”

“Over the last four years, we have created a considerable amount of shareholder value by refocusing the company through the completion of the divestiture plan and the sale of the Authentication Services business,” said Jim Bidzos, executive chairman, president and chief executive officer. “We appreciate Brian’s contributions in completing this divestiture strategy and positioning the company to take advantage of new opportunities. We all wish Brian the very best. Brian will be available to assist with the transition through Sept. 30.”

“This decision was a very difficult one for me to make. Verisign has an excellent team, a strong business model and has been executing on all its objectives in the first half of 2011,” said Brian Robins. “I wish the best for my Verisign colleagues.”