Bloomberg reports Petards considering sale

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04/22/2008
Bloomberg is reporting that Petards, a U.K.-based IP video firm, is considering a sale or major refinancing. Negotiations also include the possible sale of some units, Sunbury, England-based Petards said today in a statement distributed by the Regulatory News Service. "Discussions are at various stages of advancement and there can be no certainty that any of the approaches will lead to an offer being made,'' Petards said in the statement. The surveillance systems maker, which has posted losses for eight straight years, sold its U.K. software business to BAE Systems Plc in January. The company said it would use the 2.5 million pounds from the sale to pay down debt. Petards's 6.8 million pounds of current liabilities at the end of June exceeded its current assets of 6.3 million pounds, leaving Petards with no working capital, which companies use to maintain operations. Who'd be interested in Petards? Well, any of the major brands who might be a little late to the IP ballgame, I guess, but most of those have already caught up. This is one company that might just be left on the vine to wither. Wednesday morning, additional information: This morning I received the statement from the Petards board: The Board of Petards announces that it is in discussions with a number of parties concerning the potential sale of the Company and/or one of its divisions or, alternatively, a refinancing of the business by a third party. Such discussions may or may not lead to an offer being made for the Company or the acquisition of a division of the Company or a refinancing of the business. The Board of Petards, which is being advised by Collins Stewart Europe Limited, wishes to stress that the approaches and the resulting discussions are at varying stages of advancement and there can be no certainty that any of the approaches will lead to an offer being made for the Company or the acquisition of any of its divisions or a refinancing of the business. A further announcement will be made as and when appropriate. That's pretty classic. So, to summarize, Petards is in discussions with a number of parties about either selling the company, selling a part of the company, or not selling the company and refinancing the company with a third party. However, there's no certainty any of those things will happen. No wonder the stock went up!