InterX rejects MBO for Ideal

Contrary to speculation, InterX has ruled out a management buy-out of its IT distribution division, Ideal Hardware.

Contrary to speculation, InterX has ruled out a management buy-out (MBO) of its IT distribution division, Ideal Hardware.

James Wickes, chief executive at InterX, said an MBO "doesn't provide sufficient value to shareholders".

Wickes refused to confirm whether any bids had been tabled, but it is understood that two offers will be made later this week. Both Ingram Micro and Computer 2000 are not expected to be on the shortlist, prompting speculation that this will pave the way for a US distributor looking to gain a foothold in Europe.

At the CTS show in Birmingham in January, US distributor Avnet said it was hoping to buy into Europe this year and had amassed a war chest of $1bn (£625m).

InterX said last week that it was "progressing" with the separation of Ideal Hardware. The group also said it would raise investment in its internet portal, ITNetwork, from £30m to £50m and would extend the portal to other vertical markets.

Last month, InterX bought Cromwell Media for £226m mainly for its business-to-business transaction software, Bladerunner. InterX will rename the Cromwell subsidiary InterX Technology this week.