Scitex (SCIX)

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Scitex Vision-HP deal in trouble

Sources: Things are headed for a breakdown. If the sale falls through, Scitex Vision will try to hold a public issue on Nasdaq.

Gitit Pincas 6 Jun 05 17:22

Negotiations by printer giant Hewlett Packard Co. (NYSE:HPQ) for the acquisition of Scitex Corp. Ltd. (Nasdaq:SCIX; TASE:SCIX) subsidiary Scitex Vision Ltd. have not been easy. Sources inform ''Globes'' that representatives of the companies will meet in Europe in a few days to try to settle outstanding disagreements. Knowledgeable sources said today that there was a greater likelihood that the negotiations would break down than a deal being struck. The sources added that if the sale fell through, Scitex Vision would try to hold a public issue on Nasdaq.
As "Globes" first reported, an MOU for the acquisition of Scitex Vision, a maker of ink and wide format printers, was reached last March, subject to due diligence by Hewlett Packard.

The company value for Scitex Vision under the deal is $240 million, but negotiations have lasted longer than expected. The parties originally hoped to close the deal within 60 days, but the deadline has been postponed a number times. The main disagreement is reportedly not over the company value, which has already been agreed upon, but concerns Scitex Vision's subsequent absorption into Hewlett Packard.

A spokesman for IDB Holding Corp. Ltd. (TASE:IDBH) and Scitex declined to comment on the report.

Published by Globes [online], Israel business news - www.globes.co.il - on June 6, 2005

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