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Eckoh's £88mln Netcall bid fails as major shareholder rejects deal

Eckoh had offered 1.25 shares and 13p cash for each Netcall share, equivalent to almost 64p per share.

Secure payments expert Eckoh’s (LON:ECK) proposed £88mln takeover of customer service provider Netcall (LON:NET) has fallen through.

In a statement, Eckoh said one of Netcall’s major shareholders failed to support the acquisition leaving both sides “disappointed” that a deal could not be struck.

The proposal, which was announced last month alongside Eckoh’s end of year results, was expected to provide significant cost savings to the combined company.

Eckoh had offered 1.25 shares and 13p cash for each Netcall share, equivalent to almost 64p per share.

The Hemel Hempstead-based companies said at the time that the deal represented a "highly complementary fit for both businesses, offering strategic and financial synergies".

Shares in Eckoh lost 1.25% on the news to 39p while Netcall dropped almost 7% to 51p.

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