(Adds further detail, background, share price)
LONDON (Thomson Financial) - TMN Group Plc. said it has ended offer talks
with August Equity after the fund adviser was unable to secure sufficient
third-party debt financing to support an acceptable offer.
The online marketing and research provider had in May received an indicative
cash offer of 70 pence per share from August Equity, working together with TMN's
CEO Mark Smith and CFO Craig Dixon.
August Equity is now the second bidder to drop a possible offer for TMN.
Direct marketing company Tangent Communications Plc. in April decided not to
proceed with its indicative offer of around 50 pence a share, which TMN had said
significantly undervalued the company.
Chairman Peter Harkness commented: "Whilst we understand that difficult debt
market conditions has resulted in August Equity being unable to deliver an
acceptable offer to the board, the board is united in its confidence in TMN's
future as a listed company."
In its statement, TMN also confirmed that current trading is line with the
guidance given in its April trading update, when it said pretax profit for the
full year to April 30, 2008 will be within 10 to 15 percent of management
expectations following a decline in demand at its email marketing planning and
buying agency.
Regarding the first few months of new year, Smith said, "The group has shown
strong resilience, trading is in line with management expectations, and we hold
a cautious optimism with regards the remainder of the financial year".
At 8.07 a.m., shares in TMN were down 16 percent at 31-1/2 pence.
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