Misys shares edge up on M&A rumours

Shares in Misys have moved up on rumours that private equity firms are running the rule over the UK vendor's proposed merger with Swiss core banking rival Temenos.

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Misys shares edge up on M&A rumours

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Misys stock price has risen by nearly five per cent in Tuesday's trading to 303.5 pence from an overnight close of 290.3, reversing a 7.3% decline since the vendor agreed merger terms with Temenos earlier this month.

Potential suitors have until 6 March to declare their interest and disrupt a marriage proposal that would create the world's largest core banking technology company.

Investors have so far been lukewarm about the Misys/Temenos pact, viewing it as little more than a defensive reaction to tough market conditions.

In its statement declaring the merger, Misys left the door open to alternative bidders with a reference to the City code on M&A transactions: "Whichever company is to acquire Misys pursuant to this structure (whether a new holding company to be formed by Misys and Temenos or otherwise) must, by no later than 5.00pm on 6 March 2012, announce a firm intention to make an offer for Misys in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer".

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