Getronics rises on bid talk

Getronics rises on bid talk

Shares in Dutch IT services firm Getronics have jumped on news that the company has received a takeover approach from an un-named US firm.

The stock rose more than 15% to EUR6.45 after Getronic released a statement saying it had received a "formal expression of interest from a US-based firm to start negotiations with the objective to acquire all of the shares of the company".

Getronics says it has "decided to explore this option" but warns that the exploration "may or may not lead to a transaction".

The process will be supervised by a special committee of the supervisory board, consisting of chairman Rinus Minderhoud and vice chairman Berend Brix. The vendor says it has also retained financial advisors to support the process.

The Dutch firm did not name its suitor but analysts have speculated that possible candidates may include Hewlett Packard, IBM and EDS.

In a separate move Getronics says it intends to acquire a 30% stake in ServiceOne Limited, a Hong Kong-based ICT services company with an extensive presence in mainland China.

As part of the deal, Getronics will transfer its infrastructure services operations in Hong Kong, China and Macau into the new entity, which will be called ServiceOne Getronics.

Getronics also says it is selling its applications services unit in Hong Kong to Hyro Limited.

The proposed transactions are expected to be completed in the second half of 2007.

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