Sausage Software is denying a possible takeover, following rumours it is to be consumed by an American Media company.
According to the company, any talk of a takeover, American or otherwise, is "completely untrue".
The rumours were fuelled by a 20 per cent surge in Sausage's share price last Thursday, which closed at $2.12, up 40 cents.
Among the many companies considered a potential buyer is Nasdaq-listed MarchFirst, representatives of whom met with then Sausage CEO Wayne Bos earlier this year. MarchFirst is an Internet professional service firm assisting companies in setting up and implementing business models, brands and systems. Sausage chairman Gil Hoskins said the meeting was hardly cause for speculation, since Sausage is usually in discussions with up to 25 companies at any one time. "This can be anything from hi how you going?," he said.
Strengthening the rumours is talk that Telstra has agreed to the sale of its 5 per cent stake in Sausage to MarchFirst at a 50 per cent premium to the price currently trading, a charge that Hoskins has dismissed. "We are actually about to approach investors to discuss Telstra increasing its market share of Sausage," he said. "It has the option on some options which we expect them to take, so I would discount the idea it is looking to sell its stake. Besides, if the rumours were true, we would be running for cover, but we're not."