market thinks the deal wont go through?, page-18

From Technology Spectator
"While the deal momentum in the telco sector has certainly carried into the new year, one deal that failed to eventuate was the potential takeover of Darwin-based print and technology company CSG Limited. CSG was thrust into the spotlight in September last year when it told the market it had received a mysterious $340 million, $1.20 a share, takeover offer from an un-named suitor. While CSG’s management mulled over the initial offer another take-over proposal soon made an appearance.

There were a number of interested parties lined up for the deal but as it turns out not everyone was keen on the whole business. According to The Australian Financial Review, a number of suitors, including private equity players, were only interested in the IT services part of the business. The one suitor interested in the whole business, and the one that lobbed the initial $340 million offer, was Japan’s NEC and CSG predictably decided to pursue talks with NEC and give everyone else the flick.

Unfortunately for CSG’s board the talks with NEC failed to deliver an outcome and the company’s shares took a pounding before Christmas, sliding 40 per cent to 60 cents. So, CSG starts 2012 back where it started and after licking its wounds there is talk now that the company is thinking of revisiting putting the IT side of the business up for sale. The unit, estimated to be worth $240 million to $260 million, excluding debt of $80 million, had its fans last year and despite having been shown the door by CSG last year, a number of them should be keen to re-engage. "