COMPUTACENTER shareholders could be in line for a payout after takeover talks with a management-backed team fell apart.
Mike Norris, chief executive of the computer reseller and IT services group, said that it was “distinctly possible” that the company would return cash to shareholders after talks over a deal had ended.
It is thought that the buyout group, led by Sir Peter Ogden, the company’s co-founder and a large shareholder, was planning to leverage the group’s strong balance sheet to fund a bid. Nick Cosh and Cliff Preddy, non-executive directors, evaluated the approach.
Analysts believe the group is well positioned to gear up its balance sheet and return money to shareholders, either through dividends or share buybacks. The group said last September that it would consider ways to use its cash in the best interests of shareholders.
The bidding party, which also included Mr Norris and Ron Sandler, the chairman, entered talks late last year. Mr Cosh and Mr Preddy are understood to have rebuffed a £485 million informal approach last month.
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City sources said last night that the prospect of a deal was weakened by a tendency for customers to make orders in the closing weeks of the year, making it difficult to value the company until the end of the financial year.
Computacenter said yesterday that a last-minute rush of orders would put its full-year profits “materially ahead” of City forecasts.
The shares closed down 13¾p at 241¼p yesterday.