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Linedata bids for Financial Models Company

21 December 2004  |  5380 views  |  0 FMC

The battle for control of Canadian investment management technology house Financial Models Company is heating up, with French financial IT firm Linedata Services waiting in the wings should FMC president and CEO Stamos Katotakis fail to generate the financing for his own takeover bid.

Katotakis - who holds 40% of FMC stock - has until 29 December to advise BNY Capital and fellow director William Waters of his intentions for acquiring their combined 42% shareholding at a cash offer price of C$12.20 per share. If he fails in his efforts to raise the funding, BNY Capital, Waters and other shareholders have agreed to sell their stakes in the firm to Linedata Services in a mixed cash and stock deal valuing each FMC share at C$12.76.

Linedata says it will mail its offer to FMC shareholders on 24 December. The FMC board has accepted Linedata's proposals which will be binding unless bested by an unsolicitied third party proposal representing five per cent greater value.

Linedata, which has nine successful acquisitions under its belt since its creation in 1998, raised a EUR21 million acquisition warchest through a share issue in May under plans to double sales over the next two years.

John Vivash, chairman of FMC, welcomed the intervention by Linedata, which he believes will ensure a competitive price for shareholders and, if successful, build a global technology partnership.

Recommending the Linedata offer to shareholders, he says: "By leveraging the combined strength of Linedata and FMC, the company has a tremendous opportunity to build its business in Canada and around the world. The joint product portfolio will result in a large comprehensive offering of solutions and services to our customers."

If Katotakis succeeds in his efforts to finance his own bid at $12.20 " the Board will review the situation at that time," says Vivash.

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