Capita has ruled itself out from increasing in its bid for Xchanging, after yesterday’s acceptance by Xchanging of a formal cash bid from CSC at 190p per share.
In a statement, Capita said it ‘does not intend to revise its cash offer of 160 pence’, and that it ‘continues to believe in the strategic logic and potential benefits of its offer for Xchanging’. Capita also said that it ‘assesses many acquisition and organic investment opportunities and applies strict financial discipline to these assessments’.
Although it now looks highly unlikely that Capita will now secure the business, it’s too early yet to say for certain that CSC has dealt the knockout blow in the tussle for control of Xchanging.
Despite all of the signs now in CSC’s favour, Ebix, the US insurance software player, could yet still put forward a formal bid. It said having noted the latest developments that it ‘confirms its continued interest in making an offer for Xchanging.’ This could yet prove an unnecessary distraction for CSC and Xchanging management.
Subscribers to TechMarketView will be able to read our in-depth analysis of these latest developments later today in UKHotViewsExtra.