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Netherlands – DPA Group rules out hostile takeover

22 September 2014

Dutch staffing firm DPA Group (DPA: NL) will not consider pursuing a hostile takeover of software developer ICT Automatisering, reports SeeNews Netherlands. DPA, which owns a 20.4% stake in the company, dropped its acquisition bid in March 2014 following ICT’s shareholders rejection of DPA’s offer.

The recruitment firm initiated merger talks with ICT in June 2013. In July 2013, ICT announced its own acquisition bid for rival software development firm Brandfort. Following the departure of ICT’s CEO in November 2013, who was a staunch opponent of the merger, DPA reignited merger talks with ICT.

In December 2013, DPA requested that ICT convene an extraordinary shareholders’ meeting over its proposed purchase of Brandfort. However, the shareholders decided to reject DPA’s offer and pursue the acquisition of Brandfort.  

Eric Winters, CEO of DPA, commented last week: “We will pursue a takeover only if it can be carried out in good harmony, otherwise it does not make any sense.”

Mr Winters has also hinted that, in due course, DPA may look to reduce its stake in the company.