The two companies signed a non-binding letter of intent at the end of last year for Technotrans to buy Baldwin for 1.36 ($2.50) a share (PrintWeek, 16 December 2003).

Following Baldwins statement that it wasnt proceeding with the deal, its share price rose from around $2.50 to over $3. The company also released its second quarter financial results this week

Technotrans issued a statement that it was not willing to pay more than $2.50 to buy Baldwin, suggesting it is not willing to pursue a hostile takeover bid following the collapse of the deal.

For the second quarter Baldwins net income rose 24% to 667,000 ($1.2m) on sales up 12% to 21.5m. Net Income included a large gain from the sale of a discontinued operation.

For the first half the companys net income was 1m, compared to a loss of 3m for the same period last year, on sales up 8.6% to 40.3m.

We are pleased to report continued improvement in our companys performance, said president and chief executive Gerald Nathe. We expect that improving prospects will help to achieve better margins and profitability in the future.

Story by Barney Cox