Last night, Openwave Systems Inc. (NASDAQ: OPWV) did the right thing by rejecting a Harbinger "control offer" that was essentially a "takeunder" rather than a takeover. The offer was worth a whopping $8.30 per share. Unfortunately, the Street had hoped that the old $8.30 was grossly undervaluing the company as the shares yesterday reached $10.37.

The company also announced it was cutting 20% of its workforce and paying out a $100 million dividend; the company only has $334.4 million in cash and equivalents as of March 31, 2007. That sounds like a "we're going at it alone" strategy if there ever was one, and the company is even referring to this as a "stand-alone plan." Back in early May, shares of Openwave were nestled under $8.00.

This rejection of the Harbinger buyout was indeed the right move, but the company should have known better than to wait almost a few weeks. It doesn't take that long to use an abacus to realize that a takeunder is just not going to work. Management is a serious void here, or so it seems. Shares are back all the way down to $8.38 in pre-market trading (9:16 a.m.) or a 19.2% drop.

There are a few companies that could use Openwave as a portfolio company. Once the quarter-to-quarter performance expectations are removed, this company actually offers a substantial platform for almost every aspect of mobile communications and it already has agreements in place with most of the cell and wireless carriers out there.

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.