Telit Communications terminates talks with u-blox

7th Jan 2021 10:47

(Sharecast News) - Telit Communications has terminated talks with Swiss semiconductors company u-blox about a possible offer for the Internet Of Things communications group.
In December, Telit reiterated that talks with u-blox were ongoing. However, it said on Thursday that it did not reckon it would be possible to reach an agreement that would ensure value creation for its shareholders.

"Telit has in recent months received a number of proposals, each of which has been previously announced, which the board has explored with its advisers," it said.

"The board noted the potential industrial logic in a combination with u-blox that could create value for shareholders of both companies. However, following extensive discussions with u-blox, the board does not now believe that it will be possible to reach agreement on terms which would ensure value creation for Telit's shareholders."

It added that a protracted period of "uncertainty and distraction" was not in the best interests of the company or its stakeholders.

At 1115 GMT, Telit shares were down 11.7% at 182p.