12/01/2005 15:23
The CSE authorities stand before a dilemma after the submission of the public offer of the US company NETI L.C.C to Avacom Computer Services. The offer, which was submitted on Wednesday by NETI’s officials, recommended the acquisition of 55% of ACS against 46 cents per share or a total £25.9 million. If the CSE accepts the offer, the major shareholders will take half of the above sum, while the remaining amount will help a large number of small shareholders.
The CSE, however, has expressed its concerns on the fact that the public offer has not been signed by the stockbroker and it does not bear a certification by a European bank. It is noted that the document is simply a certification that the cash required for the acquisition are in the bank account.
CSE circles told StockWatch that they are still not aware whether the document will be accepted by the stock exchange.
There are also raising concerns on the goodwill that the buyer intends to submit for Avacom. The share traded below 1 cent before the submission of the public offer. “This might hit the credibility of the CSE”, CSE officials said.
A CSE source refused to comment on the offer, which is “under review”. The final decision will be taken next week. The report together with the public offer will be submitted before the CSE Council.
The CSE, however, has expressed its concerns on the fact that the public offer has not been signed by the stockbroker and it does not bear a certification by a European bank. It is noted that the document is simply a certification that the cash required for the acquisition are in the bank account.
CSE circles told StockWatch that they are still not aware whether the document will be accepted by the stock exchange.
There are also raising concerns on the goodwill that the buyer intends to submit for Avacom. The share traded below 1 cent before the submission of the public offer. “This might hit the credibility of the CSE”, CSE officials said.
A CSE source refused to comment on the offer, which is “under review”. The final decision will be taken next week. The report together with the public offer will be submitted before the CSE Council.
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