Update issued this morning. Shares have already collapsed from 11p/12.5p to 3.5p/5p in a couple of minutes on open this am.
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INTERCYTEX UPDATE
01 Jul 09
Intercytex Group plc - update on strategic review
Intercytex Group plc (LSE: ICX) (‘Intercytex’) today provides an update on the progress of its strategic review.
Whilst the Company continues to be in detailed discussions with a number of parties, and has received offers to acquire certain parts of the business, the Directors do not currently expect that an offer to acquire the whole business in a single transaction will be forthcoming from any of the parties currently engaged in the process. On this basis, the Company has received confirmation that they are no longer in an Offer Period for the Purposes of the City Code on Takeovers and Mergers.
Discussions for the acquisition of certain parts of the business of Intercytex are progressing, although the sum total of indicative offers received to date is significantly lower than the current market capitalisation of the Company.
As part of the strategic review, and to further control costs and preserve the Company’s cash resources, the Company will shortly commence a 30 day consultation period with employee representatives to propose a further reduction in headcount at the Company’s facilities in Manchester and Cambridge UK. The Company may also need to reduce headcount at its Boston facility in the US.