Speculation over the future of Azlan reached fever pitch last week after CHS Electronics was mooted as the frontrunner to take over the troubled networking distributor.
According to various industry sources, the Miami-based distributor has visited Azlan's site in the past few weeks and been engaged in talks with Barrie Morgans, chairman and CEO at Azlan.
One source said: 'Despite all its problems, Azlan is still seen as the best value added distributor in the country and buying it would give CHS products like Cisco and Bay.'
Morgans refused to comment on industry speculation. 'We have shown the City a good strategy and balance sheet which will remain in place,' he said.
But Morgans, who refused to say if he had been in talks with CHS, conceded: 'If an offer was made for the company, I have always said I would consider it.'
Craig Toll, chief financial officer at CHS, denied the distributor had purchased Azlan: 'Our policy regarding potential acquisitions or acquisitions in preliminary stages is to give no comment or response until there is a letter of intent which has been approved by our board of directors.'
Speculation was further compounded after sources close to Azlan revealed that an emergency meeting with the distributor's European directors, which was due to take place in the UK on 17 June, was cancelled at the last minute. However, Morgans denied that the meeting was linked to an announcement of a takeover.
Richard Kaminsky, director of investor relations at CHS, said: 'We do not comment on acquisitions that have not been properly announced.'
One observer commented that the product distribution business could be sold, leaving Azlan with its lucrative services and training operation.
Another source said: 'Azlan should jettison the distribution business. I would be surprised if it did as well if it was kept on.'
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