Guardian iT in takeover talks

Guardian iT in takeover talks

Guardian iT, the City-based disaster recovery firm brought low by the recent discovery of a £2.5 million black hole in its accounts, says it has entered preliminary bid talks with an undisclosed suitor.

News of a possible takeover comes just days after the data back-up company uncovered serious accounting discrepancies leading to the resignation of chairman Richard Raworth.

By mid-morning Guardian iT shares were trading up 45.8% at £0.52. The stock has lost of 70 per cent of its value since issuing a profit warning in December. At the height of the tech stocks bull market, Guardian iT shares were changing hands for £17 each.

The company has not revealed the identity of its bid partner, but SunGard, HP and IBM are all likely candidates.

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