Adobe says thanks, but no thanks, to Quark buyout bid

Though it is only one quarter the size of the company it is trying to buy,Quark Incorporated, makers of the QuarkExpress desktop publishing package,attempted to purchase Adobe Systems Inc., makers of PageMaker and Illustrator, this week. The offer was rejected by Adobe shareholders, however, because Quark didn't specify a dollar amount. In a letter to theshareholders, Quark asked them to "seriously reconsider" the offer. Thenews comes amid rumors that Adobe's earnings for this quarter will come inat far less than previously expected.

Tim Gill, Quark founder and chairman, says a combination of Adobe and Quark"would create considerable value and benefits through the synergies, cost-savings and cross-marketing opportunities realizable only through sucha transaction."

Adobe is standing firm, however. In a brief statement issued Wednesday,the company says that offer failed to offer any "material terms that wouldconstitute a firm and bonifide offer, including price."

Ah yes, but what a concept: Quark's annual revenues in 1997 were only $200million, compared to over $900 million for Adobe. You have to give them credit for trying