(Alliance News) - Shares in Crimson Tide PLC leapt after it disclosed a competing bid proposal from Ideagen Ltd, which trumped a second approach from Checkit PLC.
Crimson Tide is a Kent, England-based software developer and provider of the mpro5 process management application, helping companies to become more digital and their workforces more mobile.
Last Friday, Crimson Tide said it received two bid approaches. One was a second all-share bid proposal from Checkit.
Under the terms of the all-share deal, Checkit would offer 9 shares for every one held in Crimson Tide. The initial tilt from Cambridge-based Checkit earlier in June offered 7 Checkit shares for every one in Crimson. That valued Crimson Tide at around GBP12 million.
Crimson Tide said it had rejected the second approach on Friday, noting neither proposal contained a cash alternative.
Also on Friday, Crimson Tide received a non-binding proposal from Ideagen Ltd, an 'innovation consultancy' firm, regarding a possible cash offer for the company at a price of 312 pence per Crimson Tide share. This would value Crimson Tide at around GBP21 million.
Shares in Crimson Tide leapt 42% to 252.40p in London on Friday afternoon, giving it a market value of just under GBP18 million.
Shares in Checkit, meanwhile, fell 4.0% to 20.15p.
Crimson Tide said it was considering the Ideagen proposal.
London-based Ideagen has until July 19 to make a firm bid, while Checkit's deadline is July 2.
By Jeremy Cutler, Alliance News reporter
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