Coms eyes takeover of Pinnacle Technology

3rd Sep 2013 14:58

Shares in AIM-listed business services firm Pinnacle Technology rose sharply on Tuesday after Coms said it was thinking about a possible offer for the company.Coms, which is focused on hosted business phone systems, said it is "considering a possible corporate transaction with Pinnacle that could result in an offer by Coms for the entire issued and to be issued ordinary share capital of Pinnacle being made". If an offer is made, Coms said it would be at or around 21p per Pinnacle share. Accordingly, Pinnacle's share price was up 18.31% at 21p by afternoon trade, valuing the company at around £7.35m.Pinnacle provides a range of converged managed solutions including IT support and security, communications and collaboration, connectivity and mobility, software-as-a-service and infrastructure.Shares in Pinnacle have declined sharply in 2013 - the stock was down 42% year-to-date by Monday's close - as fiscal first-half revenues and profits have both fallen due to challenging trading conditions, a lower level of high-profile event related activity, and a reduction in the number of IT security projects.Coms assured that this doesn't represent a firm intention to make an offer and there is no certainty that an offer will eventually be made.BC