Misys confirms MBO interest
09 June 2006 | 7183 views | 0
Shares in UK banking systems vendor Misys have surged on news that some members of its senior management are exploring the possibility of making an offer for the company.
The news sent Misys shares up as much as 26% to 229.25 pence. Shortly before the markets closed the stock was at 222 pence, valuing the company at £1.1 billion.
In a short statement to the stock exchange, Misys says it has noted the recent movement in its share price and confirms that it has received a request to explore the possibility of an offer.
The vendor says no offer has been received and no price has been discussed.
An independent committee of the board has been established to consider the request, says the statement.
Misys is in the process of restructuring its businesses following a 25% decline in first half operating profits at its banking systems division.
The group had hired Steve Vaughan to oversee the restructuring and assume responsibility of Misys' new core banking unit, which will be created by the merger of its retail and wholesale banking operations. But Vaughan quit in April after just one month in the job following "material differences" with the company. He was recruited after the previous Banking Systems' CEO Ivan Martin ended his ten-year association with the company in December last year.