Takeover talks between Psion and Amstrad have broken down after the two companies could not agree on terms.
Psion advisers Charterhouse and BZW issued a statement regarding the potential offer by Psion for Amstrad.'The board of Psion announces that such discussions have now been terminated, as it was not possible to reach agreement on the price at which such an offer would be made,' it said.
Psion had initially indicated it would pay 200p per Amstrad share, valuing Alan Sugar's company at around u234 million, but is said to have revised its opinion after spending a month doing due diligence work at Amstrad.
Sources suggest talks were called off after Psion received a report on Amstrad from Charterhouse and BZW.
Psion was interested in Amstrad because of its Dancall subsidiary, which would have allowed Psion to incorporate GSM mobile phone technology into its personal organisers. Psion is believed to already be a year and a half behind some rivals in this field.
But sources said Psion was expected to reaffirm its interest in this area when its half-year results were announced last Thursday.
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