Brief: Financial Objects quashes acquisition rumours
11 December 2001 | 2115 views | 0
Banking software provider, Financial Objects, has dismissed reports that it is being stalked by financial technology giant, Misys plc.
A report on Bloomberg earlier today repeated the story, which first appeared in the Independent newspaper, that Misys would be willing to pay as much as 128.25 pence per share for Financial Objects. This would value the company at £50.3 million, well within the capabilities of the acquisitive Misys group. Significantly, in its original report the Independent did not reveal the source of the story.
Yesterday, Financial Objects share price rose to 97.5 pence against a general weakening in the market for TMT stocks. Earlier today the stock was holding firm around the 98 pence mark.
If the rumour was proved to be correct - and it is being denied by Financial Objects - any prospective acquisition would have regulatory hurdles to overcome. Misys is the dominant force in this sector of the financial technology marketplace. The addition of Financial Objects' client base, to its own extensive customer list, would raise competition issues.