London market data technology vendor CMS WebView says talks with a potential bidder for the company have fallen through. The firm has also closed down its US offices and reduced its UK workforce under sweeping cost cutting measures.
AIM-listed CMS suspended trading in its shares on 10 March after confirming it was in discussions about a potential reverse takeover of the firm.
But in today's statement, the vendor says the proposed deal "would not be in the best interests of CMS shareholders at this point in time, when factoring in current opportunities for CMS to strengthen its position by ensuring key business is secured in 2005".
Trading in CMS shares resumed today with the stock plummeting 38% to 2.38 pence on the news.
CMS has also implemented a series of cost cutting measures following a strategic review implemented last November after the firm failed to meet sales targets for its proprietary TDI software.
Following the cost cuts, the vendor is now forecasting losses for the year to be £550,000, 50% lower than anticipated, leaving cash reserves of around £700,000 at the year end. The reduced estimate is based on the assumption that CMS will not secure any new TDI or data feed orders this year.
The vendor says one of the largest cost savings has been achieved by closing its US offices in New York and Chicago, as well as reducing its UK headcount, although the precise number of redundancies were not disclosed. The firm has also managed to renegotiate contracts with a number of suppliers and advisers.
CMS has also secured a new contract with an existing exchange client for enhancements to its TDI system, which will be delivered by the end of May 2005.