However, Nachum ‘Homi’ Shamir, Scitex president and CEO, has stated that the offer was not high enough to make his company seriously consider the sale.
According to Hebrew daily newspaper Yediot Ahronot, the offer was US$200m, at least US$50m short of what Scitex considers to be a fair price. However, Oc’s offer for SDP reflects a price of US$4.60 for Scitex shares, 7.5 per cent above its market price.
There is also speculation in the industry that Xerox may be considering purchasing the company. Xerox has an existing relationship with Scitex in Europe where it distributes Scitex’s products.
Scitex remains coy over its plans for the company and Shamir has ruled out the offer by Océ.
Shamir also made the cryptic remark, “Maybe we’ll soon read that Heidelberger Druckmaschinen is offering US$300 million for SDP”, although it is unclear whether this is an admission of an offer from Heidelberg.
Shamir originally insisted that SDP was not for sale, but would consider any serious offers that are made. However, the company appears to have reconsidered its position, releasing the following statement earlier this week.
“In response to inquiries and press reports, Scitex Corporation Ltd. has announced it is reviewing strategic alternatives (including a sale) for its wholly-owned subsidiary Scitex Digital Printing, Inc. headquartered in Dayton, Ohio.
“Goldman, Sachs & Co., Inc. is assisting Scitex in this respect. There is no assurance that any transaction or other material development will result or as to the purchase price for SDP if a sale occurs.”
Shamir’s unwillingness to sell the business is understandable after Scitex made its return to profitability for the third fiscal quarter, with SDP making a strong contribution.
Scitex, which has holdings in several companies that operate in the digital printing field, recorded a US$5m net profit, compared with a US$0.8m net loss in the same period last year. Revenue for the third quarter rose 24 per cent to US$71.5m, compared with revenue of US$57.7m in the third quarter of 2002.
Operating income was US$6.2m, up from operating income of US$2.1m in the third quarter of 2002.
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