Troubled infrastructure services vendor Getronics NV saw its shares rise more than 7% as reports resurfaced that it was in takeover talks with telecoms operator KPN NV.
Dutch newspaper De Telegraaf claimed that Getronics’ bankers were preparing the company for a sale to KPN, a rumor that previously surfaced in the business press in January. A Getronics spokesman declined to comment when contacted by Computer Business Review.
Getronics had a tough time in 2006, as it broke its banking covenants following an accounting scandal at its Italian operation in March, and subsequent poor financial results in August caused a 40% drop in its share price and a credit rating downgrade, and forced it to make a number of divestments and job cuts.
Last month, the company was also named as a possible takeover target for domestic IT services rival Ordina NV.
KPN is known to be interested in expanding its services business, after looking at the success enjoyed by the services operations of other European telecoms operators, notably BT Group, Deutsche Telekom, France Telecom and Swisscom.
There have been several examples of telecoms operators acquiring IT services contractors in the last two years. Last February, Belgacom beat a rival bid from France Telecom to acquire network integrator Telindus for $700m.