Communisis in new talks of a takeover
Printing company Communisis yesterday confirmed that it was in its second set of takeover talks this year.
The Leeds-based group said the discussions are at an early stage with what it described as “a small number of other parties”. But, the group said, “it is far from certain that they will lead to an offer being made for the company or one of its divisions”.
Talks have broken down before. Earlier this year Communisis held separate discussions with a number of private equity houses, but the talks came to nothing.
City followers speculated that the approaches reported today, which are from new suitors, could lead to an offer of 130p per share.
Shares in Communisis initially jumped almost 11 per cent on the news, but later fell back to end at 113p as investors worried that there might again be no formal offer. At this level, the group is valued at £158m.
The company, which prints reports and booklets for a range of blue-chip clients including BT, Barclays, and NTL, reported unchanged half-year adjusted profits before tax in September of £6.5m, on sales up three per cent to £135m. It recently won a one year contract with Lloyds TSB valued at £2.1m.
