3rd Dec 2008 11:18
3 December 2008
Electronic Data Processing PLC
Offer talks terminated
Electronic Data Processing PLC ("the Company" or "EDP") announced on 7 July 2008 that it had noted the press speculation concerning a possible offer for the Company and that it was in early stage discussions regarding a possible offer for EDP from its management which may or may not lead to an offer being made for the Company.
It was anticipated that these discussions could have led to the sale of the Company in a private equity backed management buy-out ("MBO"), however the successful conclusion of these discussions was reliant on the availability of financing arrangements. Unfortunately, due in part to the current uncertain economic and banking environment, the financing which was required to support the MBO is not available and therefore active discussions by management with providers of finance, and consequently their interest in making a possible offer for the Company, has ceased. Accordingly, the Company is no longer in an Offer Period for the purposes of the City Code on Takeovers and Mergers.
The Board of EDP believes that the broader economic climate is currently unsupportive of general corporate activity and therefore does not intend to pursue discussions with any third parties regarding a possible offer for the Company. However the Board intends to consider alternative strategic options available to the Company in order to maximise shareholder value. These options include a return of surplus cash to shareholders.
A further announcement will be made in due course as appropriate.
Enquiries
Electronic Data Processing PLC
Julian Wassell (Chief Executive)
Tel: 0114 2622007
John Stephan
BDO Stoy Hayward LLP (Financial Adviser to EDP)
Tel: 0121 352 6200
Tim Feather / Matthew Johnson (Broker to EDP)
Hanson Westhouse Limited
Tel: 0113 246 2610
Toby Mountford (PR Adviser to EDP)
Citigate Dewe Rogerson
Tel: 020 7638 9571
BDO Stoy Hayward LLP, which is regulated in the United Kingdom by the Financial Services Authority, is acting for EDP and no one else in relation to matters described in this announcement and will not be responsible to anyone other than EDP for providing the protections afforded to customers of BDO Stoy Hayward LLP.
Hanson Westhouse Limited, which is regulated in the United Kingdom by the Financial Services Authority, is acting for EDP and no one else in relation to matters described in this announcement and will not be responsible to anyone other than EDP for providing the protections afforded to customers of Hanson Westhouse Limited.
Related Shares:
Electronic Data Processing