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NMW welcomes ACT bid

Neil Thapar
Thursday 22 October 1992 23:02 BST
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ACT Group, the computer systems house, has launched a pounds 3.8m rescue bid for NMW Computers, the troubled financial software company in which it already owns 25 per cent, writes Neil Thapar.

The cash or all-paper offer is valued at 18p a share, well below NMW's market price of 41p before the bid was launched.

The takeover is being recommended by NMW's board and Schroders, its advisers, following deepening losses at the company. Yesterday it reported a pounds 1.2m taxable loss for the half-year to 30 June, compared with a full-year deficit of pounds 207,000 in 1991.

NMW's problems were blamed on an 'unforeseen poor level of sales', and higher than expected software development costs at NMW Charterhouse, a subsidiary.

ACT acquired its initial stake in June at 40p a share. However, the takeover will give the enlarged group a dominant position in the market for Taurus, the paperless share trading system under development by the Stock Exchange. The deal is subject to a monopolies clearance.

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