Getronics shares plummet as talks fail

19th July 2007, Comments 0 comments

19 July 2007, AMSTERDAM (AP) - Shares in Getronics NV plummeted Wednesday after the Dutch IT services contractor said talks it was having on possibly being acquired by a U.S. company had fallen apart.

19 July 2007

AMSTERDAM (AP) - Shares in Getronics NV plummeted Wednesday after the Dutch IT services contractor said talks it was having on possibly being acquired by a U.S. company had fallen apart.

The stock was down 16 percent to EUR 5.47 in Amsterdam.

"Following preliminary discussions, before either negotiations or due diligence were started, the talks with this party have been terminated," Getronics said, without citing a reason. The potential suitor was never named.

The announcement that Getronics had received a "formal expression of interest from a U.S.-based firm to start negotiations with the objective to acquire all the shares of the company" on July 3 led then to a 16 percent jump in the company's stock price to EUR 6.52.

Getronics works with organisations on what information and communications technology could improve their operations and helps them install and manage it. Its customers are concentrated in the manufacturing and financial industries, and governments, with the U.S. military an important client. The company's current market capitalisation is around EUR 670 million.

[Copyright AP 2007]

Subject: Dutch news

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