Kingston says bid talks end over price disagreement |
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Fri, 31 Mar 2006 19:05
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LONDON: Kingston Communications Plc. announced Friday it has ended talks on a potential takeover as it failed to agree on the price.
In a trading statement, the company said discussions relating to an unsolicited potential offer for the company have ended because the parties failed to agree on price and structure.
Kingston Communications, a former monopoly in Hull, providing phone, internet and television services, first revealed about the bid in November. While the bidder's identity was not revealed, it was believed to be U.S. private equity house Carlyle.
Meanwhile, the company came out with stronger sales and earnings forecasts for the second half. It said its broadband service continues to grow and the customer base is likely to cross 119,000 at the end of the full year, 61 per cent higher than last year.
However, second half revenues and earnings at its Affiniti division would be below expectations due to increased costs and an altered billing cycle as it is revamping its product portfolio.
The company is making a further impairment provision against the carrying value of its network assets.
The second half results are expected on 23 May.
Kingston's shares fell by as much as 15 per cent and stood at 60-1/2 pence.
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Reports say Carlyle is Kingston bidder 