Paul Berry, chairman of Simply Computers, has poured scorn on speculation that the London mail-order and retail operation is in the throes of takeover talks.
It was widely believed last week that Misco was to acquire the operation during February, in a bid to expand its UK operation. Misco is part of the Global Direct Mail group, based in 12 countries, with a turnover of more than $1 billion.
Berry distanced the company from any links with Misco. 'It's a case of people putting two and two together and getting five,' he said. 'There is no truth in it. At present, we have no plans either to acquire or to be acquired. The other rumour circulating was that we were merging with Insight or Tech Direct as well. There are no such plans at the moment.'
However, a source close to Simply Computers claimed the speculation was more than a rumour and that negotiations had been under way for at least six weeks.
Les Biggs, vice president of European operations at Global Direct Mail, said: 'We are keen to grow, both organically and by acquisition. We have talked to people, but not in this case. I am unaware of any deals.'
Jeremy Davies, senior analyst at Context, said: 'Simply has to compete with the likes of Tiny, Gateway and Dell. Dixons dropping its prices puts more pressure on a company like Simply, which could easily have won on price before.'
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