Pace fights back with proposed Motorola Home acquisition bid
Editor | 11-12-2012
Shrugging off its recent managerial and supply problems, broadcast technology and services firm Pace has made an audacious bid to buy the Motorola Home business line from Google.
In the wake of what it called "press speculation in relation to a potential transaction involving Google's Motorola Home business," the board of the Yorkshire-based company confirmed that it has made an indicative, non-binding, proposal to Google leading to a suspension of its ordinary shares. In a statement to investors, the Pace board stressed that it would only pursue a transaction if it believes, at the appropriate time, that it will be in the best interests of its shareholders.
Pace added that shares will recommence trading either on sufficient information on any potential transaction being provided publicly to shareholders, whether in the form of a prospectus or otherwise, or on the release of an announcement confirming that the company was no longer in discussions with Google regarding the potential acquisition.
Pace added that discussions with Google were currently at a preliminary stage and there was no certainty as to whether any agreement regarding a transaction will be reached. It also stressed that the potential acquisition would be classified as a "reverse takeover" under the UK Listing Rules.
The news comes following a prolonged period of speculation as to what Google would do with its Motorola Home business line which designs, manufactures, sells, installs and services set-top boxes for digital and IP video, satellite and terrestrial broadcast networks, and IPTV distribution systems, broadband access network infrastructure platforms, and associated software solutions to cable TV and telcos.
For Pace, the prospective bid represents a welcome bit of good news following the recent run of bad news culminating on 9 December with BT terminating a supply contract with Pace for STBs capable of supporting the YouView service.