Possible Offer for Compel

Computacenter PLC 1 June 2000 Computacenter seeks to make recommended offer for Compel The Board of Computacenter plc ('Computacenter') announces that it has recently approached the Board of Compel Group plc ('Compel') with a conditional proposal to acquire the whole of Compel at a price of 275p per share in cash, valuing Compel at approximately £85 million. The making of an offer at this price and the confirmation of its terms is subject to (i) Computacenter receiving certain limited due diligence information in relation to Compel and such information proving satisfactory to Computacenter; and (ii) Compel's Board of Directors recommending the offer for acceptance.* Currently, the Board of Compel has not agreed to provide the due diligence information requested. This announcement is being made to facilitate a more open discussion with Compel's shareholders on the attractions of Computacenter's proposal. Mike Norris, chief executive of Computacenter said 'I continue to hope that the Compel Board will co-operate with our approach. An offer would provide Compel shareholders with the opportunity to exit, at a significant premium to the current share price and in cash, from a market which is both scale sensitive and consolidating'. * It should be noted that Computacenter reserves the right to waive either or both of the preconditions referred to above and that even if such preconditions are satisfied (or waived) an offer will not necessarily be made. Press enquiries Brunswick Jon Coles 020 7404 5959 Catriona Booth HSBC Investment Bank Plc 020 7336 9000 (Corporate Finance) David Blake Alastair Moreton (Corporate Broking) John Hannaford Ashank Patel HSBC Investment Bank plc ('HSBC'), which is regulated in the United Kingdom by The Securities and Futures Authority, is acting for Computacenter plc and no one else in connection with the matter referred to in this announcement and will not be responsible to anyone other than Computacenter plc for providing the protections afforded to customers of HSBC, nor for providing advice in relation to the matter referred to in this announcement.
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