IWL / Sanford deal meets mixed response
The proposed merger between financial planning technology companyIWLand sharemarket information system provider Iress Market Technology has hit a stumbling block after IWL announced it has purchased a bigger stake in online broking group Sanford.
Iress said in a statement yesterday it was not involved in the negotiations between IWL and Sanford and would seek further information about the deal before considering its response.
The statement says Iress’s strategy has not been to actively participate in businesses that compete with its core customer base of brokers and wealth managers.
The statement came one day after IWL revealed that it had struck the deal to boost its stake in Sanford from around 5 per cent to nearly 10 per cent, with options to further increase the stake to more than 17 per cent.
IWL chief executive Otto Buttulla says the group remains fully committed to pursuing the proposed merger with Iress, despite the deal with Sanford.
An extraordinary meeting of IWL shareholders has been set for November 8 to approve the Iress merger.
Meanwhile, the announcement of the IWL/Sanford deal has coincided with ructions amongst Sanford’s shareholders.
Sanford was yesterday served with two notices by shareholders calling for the removal of a number of its directors, including the group’s chief executive Steven Goh.
AUTHOR
George Liondis
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