LONDON (Alliance News) - Capita PLC said Wednesday its offer for Xchanging PLC has lapsed with immediate effect, and shareholders who had accepted the offer are no longer bound to it, as it failed to reach the required level of acceptances in the face of a higher offer from Computer Sciences Corp.
FTSE 100 outsourcer Capita had agreed a deal for business processing, technology and procurement services provider Xchanging at 160 pence per share in October. However, in early December, CSR made a higher 190p per share bid, valuing Xchanging at GBP488 million. Capita had said that it did not intend to lift its offer.
Shares in Xchanging were up 0.3% at 192.00p at the close Wednesday. Capita was up 2.4% at 1,173.00 pence.
Although Capita had extended the period under which it could receive acceptances, it ultimately received acceptance levels of 15.46%, well below the 90% required.
Capita said Wednesday that, under UK takeover code, it reserves the right to approach Xchanging in the event that the CSR deal falls through.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Capita (CPI)