Quadtel pulls out of CHA acquisition
- 04 December, 2000 11:51
CHA's tale of woe in attempts to sell up continued this week with the announcement that its proposed acquisition by telco hardware distributor Quadtel was not proceeding.
In a press statement, CHA managing director Roger Bushell claimed Quadtel were actually in no position to afford the deal.
"We had a series of meetings, conversations and communications to say that it was a done deal between CHA and Quadtel right up to this week," Bushell said in the statement. "Then, and only then, were we informed that Quadtel is not in a position to commit to the acquisition.
"After 10 weeks of negotiations and due diligence on CHA, Quadtel didn't disclose it couldn't afford the deal until this week."
Bushell alluded to recent lack of investor interest in Quadtel as being the cause of the deal's failure.
"I guess you only have to watch the stock market to see that a huge chunk of its market capital has been eroded recently," he said. "It is a shame Quadtel couldn't complete [the sale]. Not least because of the substantial resources taken up in negotiating this kind of deal, but especially because the agreement did offer significant broadband synergy between the companies."
An obviously disappointed Bushell indicated CHA is still very keen to push into the broadband space and said it is something he hopes to "pursue vigorously" with its "existing vendors as well as new ones". He claimed it was always the strength, turnover, profitability and national infrastructure of CHA that was driving the deal in the first place.
"So it is back to business as usual at CHA today," he said.