Pegasus calls off Sage talks

Takeover talks between accountancy software vendors Sage and Pegasus ended abruptly last week after the Pegasus board decided to withdraw from discussions.

It claimed it was unable to consider the offer, following legal advice which stated the deal would probably be referred to the Monopolies and Mergers Commission (MMC).

Pegasus CEO Jonathan Hubbard-Ford said: 'It was not a question of price.

If there were any possibility of it being referred to the MMC, it would have led to uncertainty and alienation of our dealer base.'

But Sage doubted whether the deal would have been referred. CEO Paul Walker blamed Hubbard-Ford for the failure of the deal, saying: 'It's all finished. I doubt that Hubbard-Ford will change his mind. He hasn't shown any interest in his shareholders. If there is a change in management then we'll be there for another day.'

Hubbard-Ford said a few large shareholders were disappointed not to take a profit, but added that most other large investors understood.

Sage made an initial bid of 380p per share for its rival earlier this summer. After its first rejection, it moved to 425p per share and then to a final offer of 475p per share.