K3’s biggest shareholder could launch bid

K3 BusinessTechnology has said that it has received an approach from its biggest shareholder about a possible offer for the company.

The company, whose shares were trading at 121p when the market closed yesterday, giving the company a market capitalisation of £31.4m, has received the approach from Mr P J Claesson, who currently holds a stake of 19.5% in the business and is a non-executive director. K3 Business Technology sells enterprise resource planning software and is based in Salford Quays.

“Mr Claesson has indicated to the board that he feels that the value of the company and its future opportunities, especially in its managed services business, are not fully reflected in the current share price,” the company said in a statement.

“The board wishes to make clear that discussions with Mr Claesson are at an early stage and there can be no certainty that any offer will be forthcoming.”

The firm has appointed Deloitte Corporate Finance in order to conduct a strategic review of the business to advise on its options.

The firm reiterated an earlier statement from chairman Tom Milne which said it is likely to meet management’s expectations.