Xeikon has failed in its bid to secure new funding and now looks likely to be sold, with MAN Roland the favourite to step in and save the business.

Xeikon entered the Belgian equivalent of Chapter 11 creditor protection in November, and was given four months by the courts to secure new financing.

Today (22 January) Xeikon announced that it does not appear feasible to secure new capital for the company within the timeframe of the provisional creditor protection. By contrast, serveral parties have shown an interest in acquiring all or part of the companys activities or assets.

MAN Roland pinned a large part of its future digital strategy on Xeikon when it launched its DICOpress range, based on the Xeikon engines, in February 2000. The stated aim was to build a DM200m division within four years, and Roland is the most obvious candidate to buy its ailing partner. Roland would look rather silly in terms of its digital strategy otherwise, or if a competitor stepped in, commented one digital printing expert.

Robert Weiss, product manager for DICO OEM products at MAN Roland, would not comment on whether Roland would make a bid. He said: We continue with our ongoing business and are completely convinced that Xeikon will go on, and see serious potential in our future with Xeikon. We cannot disclose confidential information and cant influence the decision of the Belgian courts.

Oc is also being mooted as a potential suitor, perhaps in partnership with Roland.

Proceeds from the sale of the business would be put towards the repayment of Xeikon's outstanding debts, which includes Euro30m owed to banks. Post-sale the firm would be put into liquidation. Shareholders, including Agfa which has a 25% stake in Xeikon, are unlikely to receive anything.

Xeikon shares are also being delisted from the Nasdaq stock market.