takeover rumours

The source -

After weeks if not months of negotiations and acting with the total support of his own major shareholders, Regus (flat at 190.5p) founder and boss Mark Dixon is about to splash the cash Down Under.

He has apparently come to an agreement with ServCorp’s entrepreneurial founder Alfred Moufarrige and major shareholders and will soon announce an agreed near-£400million acquisition of the multinational organisation that sells office space, virtual office products and IT services.

Analysts say that if Dixon can pull it off, it will put Regus on another level and lead to a substantial re-rating.

Market report

ServCorp has over the years expanded into Singapore, France, Japan, and across South East Asia, closely followed by expansion into Belgium, the Middle East, China, India and New Zealand. In early 2010 it expanded into the US. It has not, up until now, gained a major presence in the UK. Come in Regus.

The Regus share price has risen 94 per cent since last December’s low of 98p. The group has drawn strength from the improving UK economy and in late October reported that third-quarter revenues had soared 25 per cent to £386.6million. Investec’s target price is 205p but should be upgraded if ServCorp joins the party.


Read more: http://www.thisismoney.co.uk/money/markets/article-2519052/MARKET-REPORT-Regus-set-splash-cash-expand-new-space.html#ixzz2mwCHFRW1
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