(Alliance News) - Marlowe PLC on Tuesday confirmed that it does not intend to make an offer for commercial relocation and IT recycling business Restore PLC.
Marlowe's stock was up 8.8% at 818.00 pence in London on Tuesday morning. Shares in Restore were 3.8% lower at 485.00 pence.
London-based safety services and software provider Marlowe said the price demanded by Restore was too high.
In late July, Restore confirmed that Marlowe had approached the company over a possible takeover offer worth 530p per share.
"The board does not believe that a combination with Restore at an offer price that would be required to secure a recommendation from the Restore board would deliver attractive value creation for Marlowe shareholders," Marlowe said in a statement.
In response, Restore said it was delighted to have received such strong support from its shareholders and was committed to generating sustainable value over the long-term.
In a separate announcement, Restore announced it had acquired IT recycling firm PRM Green Technologies Ltd for an undisclosed figure.
The purchase of Cannock, Staffordshire-based PRM ties in with Restore's acquisitive growth plans, having bought four businesses in the IT asset disposition sector in the past 12 months.
"The addition of PRM to the business will add more scale, expand our e-commerce business and provide a strategic presence in the UK education sector. Restore Technology is now comfortably the UK market leader in the recycling of IT assets and with the addition of PRM we have created an even greater opportunity to grow, both organically and through further acquisitions in the future," commented Chief Executive Charles Bligh.
By Will Paige; willpaige@alliancenews.com
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Marlowe (MRL)
Restore (RST)