CHS in talks to keep Tech Data at bay

CHS Electronics is understood to be thrashing out takeover details with Northamber in a move to prevent US-based Tech Data from gaining a foothold in the UK distribution market.

Speculation over an imminent buyout has reached fever pitch after a source close to Northamber confirmed that several meetings had taken place between both distributors in the past few weeks.

A source said: 'CHS has been talking to a number of distributors, but the situation with Northamber has gone further than any others. An announcement would probably take place within the first quarter.'

But David Phillips, executive chairman at Northamber, said: 'It is none of your business, public companies do not get bought in the gestation period.' He added: 'I have no plans to resign and I am sick of denying this.'

Northamber recently reported an increase in turnover to #314 million for the 14 months to 30 June 1997 from #232 million for the 12 months ending 30 April 1996. Its share price over the past week has dropped from 236.5p on 19 January to 231.5p on 26 January.

Joe Hermani, chairman at West Coast, said: 'I would be surprised if CHS didn't buy Northamber. It has been no hidden secret that the company has been up for grabs.'

A source said: 'Claudio Osorio (chief executive at CHS) would be annoyed if Tech Data were buying Northamber, so an acquisition would keep it out of the UK.'

Steve Raymund, chairman and CEO of Tech Data, said: 'We do not comment on rumours regarding merger and acquisition activity.'

CHS was unavailable for comment as PC Dealer went to press.