Intec Telecom Accepts £236.7m Takeover Proposal by CGS

CSG Systems had offered £236.7m takeover proposal to the UK based Company Intec Telecom Systems that provides billing services to customers. The telecom has recently accepted the proposal.

However, the shares of Intec's have soared up by 30% beyond the 72p per share offer. Intec, which is counted among 100 largest communications Companies in the world, disclosed that at the end of July, it was negotiating about the takeover offer.

The bidder, who will take over has been recognized as the US billing services Company CSG. A joint statement of both the Companies have been released, which says the after the discussions the two boards have come up with an agreement on price.

The offer for the shareholders will be suggested by Intec. The offer is being supported by the General Atlantic, which posses 11.8% shares of Intec.

"The offer makes strategic sense, combining the businesses to create the second largest business software services provider”, said Jon Fletcher, an analyst at Altium Securities.

However, other analysts are of the view that the bid is disappointingly low. Julian Yates of Investec was expected that the bid would come in to be at least 90p per share, signifying that the offer could prompt the possibility of a counter offer.