Azlan has shunned offers of a buy-out after proposed purchase prices did not come up to scratch.
According to a statement issued by the networking distributor on 10 July, offers under consideration 'were not in the long-term interests of shareholders and therefore the discussions have been terminated'.
Barrie Morgans, non-executive chairman of Azlan since former chief financial officer Peter Bertram took on the role of chief executive, said: 'We had to make sure the offer was in the interest of our shareholders. The discussions were not anywhere near this.'
The distributor recently came clean over approaches to purchase the company after speculation pointed to CHS Electronics as the front-runner (PC Dealer, 24 June).
Craig Toll, chief financial officer at CHS, refused to confirm or deny the company had been engaged in talks. He said: 'Networking makes up seven to ten per cent of our business but we do not comment on whether we will grow internally or externally.'
Sherwood International, insurance software and service manufacturer, was also widely tipped to be one of two contenders. Steve Bellamy, finance director at Sherwood International, refused to confirm or deny market speculation.
Morgans would not comment further on reasons for the abandoned discussions.
But a source said: 'Due diligence was put on hold because the interested parties could not come to a resolution about price. There was also the question of a poison pill - shareholders may still bring action against Azlan after share value dived to 48p last year.'
A source close to Azlan dismissed claims of hidden costs.
Shares in the company fell 3.5p to 60p on the date of the statement but recovered to 62.5p at the close of market.
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