So what’s Reckon up to, buying a bit of Melbourne IT, ruling out a takeover offer, but suggesting closer commercial links.
Reckon revealed its move in a statement to the ASX yesterday.
"Reckon Limited (Reckon) announces that it has acquired 4.97% of Melbourne IT Limited (Melbourne IT) for $7.3 million.
"The shares have been acquired utilising existing cash reserves and debt facilities.
"This investment, which will be continually evaluated, is considered by Reckon to be a strategic investment in a potentially significant business partner.
"It is also consistent with Reckon’s stated strategy to move more and more towards meeting client demand to operate within an integrated online environment."
Reckon said in the statement, its intention at this stage is "NOT (
Reckon’s emphasis
) to make a takeover offer for Melbourne IT; NOT to increase its shareholding beyond 4.97%; but TO continue to explore a commercial relationship with Melbourne IT".
Naturally Melbourne IT shares jumped sharply and Reckon’s shares fell.
Melbourne IT shares ended up 4.7%, or 8.5c, at $1.90.
At that level the company is valued at $146 million, or less than half the $360 million value ascribed to Reckon by the market.
Reckon shares fell 7c, or 2.6%, to $2.63.
It seems Reckon wants to get the attention of Melbourne IT and bought the shares and made the announcement with that in mind.
Perhaps Melbourne IT wasn’t answering phones or emails?
