Starr, there is only two parts of the CSG business: IT and...

Starr, there is only two parts of the CSG business: IT and printing. The market is now attributing no value to the printing side, and less than value to the IT side. Perhaps CSG could do what MCP have done, and split the printing services off into a new company, and distribute the printing shares in-specie. It seems that any suitor wants the IT side of things (MCP is said to be a better takeover target with the businesses split,so I presume they have had some T/O interest- but not for printing and the main business together). The price/value of $240m-$260m for the IT part of CSG is the figure that the AFR keeps repeating.

ahas7, yes, not pretty with the court case and settlement. The AFR says that the impact should not be too much on the business, though, so that's a good factor. I am always reluctant to get in to a company with a legal case hanging over it. As Fuji Xerox is on the Board, the relationships mustn't be too bad. Fuji has definitively declined they will be bidding for the company.

I was checking out the all time graph for CSG last night. It's only a 5-year old company, and the lowest it got in the GFC was to a little under 50c, and then rose back to about $2.20 when times got better. At today's prices, it's never been cheaper. However, the earnings downgrade doesn't help. Analysts have said it is important that the company keeps up its dividend, but it all changed yesterday with the downgrade. $9m-$11m profit for this half, but analysts were hoping for $30m full year. They're probably not that far behind, and there was the $2.1m spent re the takeover, which is probably a one-off, but it will all affect earnings, and maybe dividend.

Probably a good company, and new management should shake things up. It is a monopoly player in the NT with government contracts. There has been frustration and a sell-down with this one for some time. Even after the $1.20 potential offer was announced, someone sold a block of 1.5% ($3.7m) of shares for 88c, due to the frustration of no news on the T/O.

As they say, this one is "battered".