SciSys rejects Microgen approaches

Yesterday Microgen announced that an indicative offer made to the SciSys board for the company had been rejected as “not in the best interests of shareholders” and that talks between the two companies have been terminated. Microgen says that it is still interested in making a bid for the company. SciSys shares closed down 14% lower at 43p.

Ian Spence, in his new Megabuyte daily news emai,l said “At the close of play on Tuesday SciSys had a market cap of £14.2m and net cash of £1.7m at the end of December. The company reported a loss of £1.4m on revenues of £25.6m for the year to December 2007. It is hard to comment on the decision of the SciSys board not to accept Microgen's advances without knowing the level of the indicative offer. However, whilst we are yet to be convinced of the strategic logic of the bid from Microgen's point of view, a takeover looks like a get of jail free card for SciSys shareholders. SciSys shareholders must be hoping that the company's advisers are using Microgen's interest to solicit a higher bid and that Microgen will be happy to take a turn on its 13% stake.”