Feeds

SCH confirms Compel stand-off

While reserving right to change mind

  • alert
  • submit to reddit

The essential guide to IT transformation

It's all working out rather nicely for Specialist Computer Holdings, the UK's second biggest reseller group.

Today it announced that it had 'no intention' of making an offer to take over Compel, the UK's third biggest reseller group.

This is not so very meaningful considering the get-out clauses.

"SCH reserves its right to review this situation if:

1. The Board of Compel agrees to recommend an offer by SCH;

2. A third party announces a firm intention to make an offer for Compel;

3. Compel announces it is putting itself up for sale;

4. There is a material change in circumstances."

SCH has a 11 per cent stake in Compel, the UK's third biggest reseller group, accumulated when the latter's share price into freefall following a profit warning in May.

In turn this provoked Computacenter, the UK's biggest reseller group, to launch an informal cash offer in June for Compel, rejected by the Compel board as wholly inadequate.

On October 6, Computacenter withdrew its offer - a profits warning of its own in the summer meant that the company would have had no stomach - or shareholder backing - for a hostile takeover.

This means now that Compel is no longer in play - although continuing profits gloom and low share price means the company is still vulnerable. It cannot be comfortable for it to have SCH, a big rival, as a shareholder.

It looks very comfortable for SCH - the timing for a Compel acquisition looked very poor this year, considering that the privately held company had/ maybe still has its hands full with the integration of Info'Products Europe ( a larger company than SCH) into the group.

It can now return to Compel at its leisure. Maybe next year? ®

Related stories

SCH bucks dealer doldrums
Win2K to blame for Computacenter profits slump
Pan UK reseller play no longer enough

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.