Intec Telecom Systems Share Discussion Threads

[colinhy] 28/9/2010 12:59

September 28 2010


Atlanta/London - Intec, one of the world's leading providers of Business Support System (BSS) solutions, today announced another new customer for its award-winning convergent mediation solution, Inter-mediatE. The contract, with a leading North American service provider, is for the replacement of a legacy mediation system for a growing managed voice and data networking business.

[filster] 28/9/2010 11:08

These will now motor, as I sold out this am.. Although I did buy some more GGG with the proceeds.

[djderry] 24/9/2010 20:18

I'm surprised GA agreed to this.Come on Oracle,step up and bid.

[easy going] 24/9/2010 14:51

I would say a good buy for csg, also considering itl had some 60m+ in cash. So effectively making a purchase price of circa 170m.

[colinhy] 24/9/2010 10:48

Intec shareholder General Atlantic, which holds 11% of Intec's share capital, is committed to accepting the deal, although that undertaking will lapse if a third party makes a better offer for the shares.

[colinhy] 24/9/2010 10:31

Intec Telecom jumps 32% on bid news but analysts hint at rival offers

Could a bid battle be in prospect at billing business Intec Telecom Systems?

The company, which said it was in takeover talks in July and subsequently warned a key contract had been terminated, has agreed to a £236.7m bid from US rival CSG Systems. The directors, who own 0.23%, and private equity group General Atlantic, with an 11.85% stake, are backing the 72p a share cash deal. Intec chief executive Andrew Taylor said:


Given the increasingly difficult market conditions, and the importance of scale and relevancy to our customers, this combination represents a good deal for Intec and provides certainty for our shareholders and a bright future for our employees and our customers.

But in the market Intec shares have jumped above the offer price - up 18p to 74.5p - and analysts said there was a chance rival bidders could emerge. Jon Fletcher at Altium Securities said:


The offer makes strategic sense combining the businesses to create the second largest business support systems provider. CSG is focussed mainly in the US and within the US cable industry and this provides a diversification within the telecommunications industry. However at an enterprise value/sales of only 1.1 times for 2011 a counter offer cannot be ruled out.

Investec also suggested the offer looked on the low side:


As suspected the bid is from industry (offers broader infrastructure, greater cost saving potential), but is below our expected 80p-90p range. The low bid could prompt hopes of a counter offer. We have long judged that Intec's intellectual property content and end market exposure (emerging markets) would be attractive to a number of industry players. However, the company has been on sale for some time. We leave our target price [of 85p] and buy recommendation in place for now, but our forecasts are under review.

And Panmure Gordon added:


While [the offer is] lower than we expected, we note the phrase "increasingly difficult market conditions". We feel that [the] low level of irrevocables will only encourage institutional holders to let the pair dawdle to the altar and see if another bid materialises. In truth, we feel that the deal should progress given the operational backdrop – the brace
of profit warnings from Intec – and, as we have highlighted many times in the past, the ERP [enterprise resource planning] like structure of Intec Telecom.

[colinhy] 24/9/2010 10:26

"Whilst shareholders are likely to welcome an offer, the price feels very low to us," analyst David Toms at Numis Corp. in London said in a research note.

Numis sees a "reasonable chance of an industry counterbidder."

Numis has a "buy" recommendation on the stock.

[nicedude1976] 24/9/2010 09:44

Is CGS a current shareholder? Is any of the directors not a shareholder to have such low aspirations in terms of the SP?

[tratante] 24/9/2010 08:16

Thought it might go for nearer 80, but nice profit on these nonetheless. You can still get 74.5 for them, does that mean someone thinks there is more to come? Each way bet - sold half!

I've noticed that drop in price just before an offer comes through on other COs, not confident enough to risk extra cash.

[hamish123] 24/9/2010 08:01

My sympathy goes to those still holding who bought in when this was in the 110-115p range and being tipped by a host of brokers to hit 145p!!!I took a big hit selling in the mid 60's at the time it crashed.What i find strange is this company had a huge pile of cash not long ago which makes this offer seem derisory.

[caradog] 24/9/2010 06:31

Well there it is. Recommended cash bid of 72p. Counter-bid seems unlikely. Done and dusted. Glad I got out in the low 60s after the profits warning. Nice profit for those who bought in recently.

[living dead] 22/9/2010 16:49

where to, the promised land of silk & money, care to elaborate goofy? precipitous fall today news leaked, bid talks terminated?

[simon gordon] 15/9/2010 13:41

SVM UK Opportunites - 31/8/10:

"Intec Telecom was the only major disappointment as it delivered a rather downbeat update. However, the company remains in active takeover discussions and we believe that a transaction will ultimately be consummated."

[tratante] 07/9/2010 08:00

Why does it take so long to reach a decision?

[tratante] 02/9/2010 21:38

or it may collapse if they can't agree a price, a la Kewill. Hope you're right though.

[volvo] 02/9/2010 19:29

Any conspircy theorists out there.

Look at the timing of my post and the sells today, yes 5 min later, having been no trades all day.

Price being held to make any bid seem more attractive. At 62p looking for 30pc to make it seem a good deal so 80p to 85p ish. Lets see how close I get.

[tratante] 02/9/2010 15:04

Market doesn't seem convinced!

[robbie paul] 31/8/2010 12:35

wink wink! Those in the know allowed to board and then whoosh!

[tratante] 31/8/2010 11:22

news on the way?

[nellie1973] 25/8/2010 16:10

broker upgrade
Raised to HOLD from SELL

[canigou2] 25/8/2010 09:17

free punt on takeover at these levels (assuming this is a significant premium to current SP)