HP expected to close Scitex Vision purchase within two weeks
06.6.2005 / 13:20
Nitzan Cohen
Hewlett Packard's (NYSE:HWQ) acquisition of Scitex Vision should be closed within about two weeks, TheMarker has learned.
Sources near the deal estimated this morning that IDB (TASE: IDBH) group, which controls Scitex Corporation (Nasdaq:SCIX), and HP are acting to conclude the deal this week. But last-minute delays could hold up closing for a further week, they add.
Unless HP reached an accord with IDB within a couple of weeks, Scitex will revive the concept of floating Scitex Vision in the United States, claim the sources.
Top Scitex Vision officers will be flying to the U.S. to meet with investment bankers, from Citigroup and UBS, who would lead the offering if the deal with HP falls through.
In any case, HP is all but done with the due diligence process, add the sources in the know, which would enable a deal to be signed toward the end of next week.
Insofar as is known, HP's due diligence process concluded that Scitex Vision is roughly worth the valuation publicized in March: in the range of $230 million to $250 million.
Once the transaction is done, if it is, Scitex would be transformed from a company with an asset – 75% of Scitex Vision – into a company with nothing beyond its $330 million kitty. The question is what the company owners will do with the money.
Some believe some will be shared out among shareholders as dividends, while the rest will be used for acquisitions. In any case, IDB is not known to have targeted any investments via Scitex at this time.
Theoretically IDB could use Scitex to carry out its purchase of 34.75% of Cellcom from BellSouth, but sources near IDB say there's no such plan. The acquisition will be carried out through Discount Investment Corporation (TASE: DISI) and that's that, they say.
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