Nordic Capital bid for TietoEnator fails
Cidron Services Oy (Nordic Capital) has announced today, 26 May 2008, that its public tender offer for the shares and stock options of TietoEnator Corporation lapses as the conditions to the completion of the tender offer were not fulfilled during the offer period.
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The offer period under Cidron Services' offer expired on Friday, 23 May 2008.
In its statement on 21 April 2008 TietoEnator's Board of Directors considered that Cidron Services' offer of EUR 15.00 per TietoEnator share did not reflect the true value of the company and recommended shareholders and holders of stock options not to accept the offer.
Currently there are no public tender offers outstanding for TietoEnator shares and stock options.
During Cidron Services' offer period, TietoEnator's Board of Directors has had discussions with several parties interested in acquiring TietoEnator. So far, none of these discussions have led to firm and actionable offers. The Board, however, continues these discussions to find out whether such alternatives would enhance shareholder value.
TietoEnator is focused on the implementation of its turnaround activities, Performance Improvement Programme and the revised strategy. The Board will review TietoEnator's strategy in its annual strategy meeting during the coming summer and it will publish a summary of related decisions in connection with the second quarter interim report on 18 July 2008 to provide shareholders a concrete view about the details of the strategy and the company's execution plans.
After the first quarter, the Performance Improvement Programme has continued to proceed according to plans. By the end of April, the company had achieved annualized cost savings of EUR 43 million (EUR 36 million at the end of March). Due to the good progress of the Programme and based on further analysis, the Programme's overall savings target has been increased to approximately EUR 130 million from the previous EUR 100 million. These savings and the other turnaround activities continue to have a positive impact on TietoEnator's financial performance.
TietoEnator's unaudited net sales for January-April amounted to EUR 633 million (583 million in January-April 2007), and the operative profitability of the company has continued to develop in line with the first quarter.