Innovation says 'No' again

(By Richard Holway 9.30am Wednesday 7th Oct 09) Yesterday The Times reported that Innovation had rejected an approach from EXL (US NASDAQ-listed) at 16p per share – a 45% premium. The Innovation Group (TIG) yesterday put out a statement confirming this. As the Times reported “A string of recent approaches have have failed to develop into formal bids. In March Carlyle, the private equity group, offered 15p a share, but talks were terminated a week later. Last December rival private equity bidders, thought to include HgCapital and Silver Lake Partners, were rebuffed when they offered between 15p and 20p.”

We’ve written many, many articles on TIG (subscribers can always search the HotViews archives to read the Full Monty) In January Geoff Squire stepped down as chairman and was replaced by Andy Roberts in April (See Andy Roberts takes Chair) I have consistently said that TIG will be bought on the right terms and price. Most of the previous deals, and possibly the current one, had ‘unacceptable’ terms and were ‘conditional’. 16p is also lower than the 20p+ that I suspect the main shareholders have in mind.

Trouble is that, just like the attractive girl you fancy, if she keeps saying “No”, eventually you don’t ask anymore!