Electronic Data Processing has issued a statement saying that its management had ended talks regarding a possible offer for the Sheffield-based computer-related servcies company.
In July, the London-listed company, which supplies e-business, outsourcing, application hosting and free Internet services to the merchanting and wholesale distribution industry, had confirmed that it was in early stage talks on a possible offer from its management.
“It was anticipated that these discussions could have led to the sale of the company in a private equity-backed management buyout, however, the successful conclusion of these discussions was reliant on the availability of financing arrangements,” the company said.
Insiders have been predicting that the UK will see an uptick in private equity backed take-private deals in the next six months but so far, this has not materialised.
The company does not intend to pursue talks with any third parties regarding a possible offer, but plans to consider alternative strategic options, including a return of surplus cash to shareholders, it said in a statement.
Shares of Electronic Data Processing traded 10% lower at 40p today, having risen to around 60p in July at the time a potential deal was announced. At 45p per share, the company has a market capitalisation of £11m.
Source: Thomson Merger News