Despite having made no official statement that merger talks were in progress, Reuters has revealed that manroland has called off the much-rumoured merger talks with Heidelberg, due to “poor financial results” of its larger rival.
The report cites it has consulted with three sources familiar with the matter. It also revealed that a merger in the future was not out of the question, but it would lie beyond 2010.
Heidelberg made a financial announcement on Friday saying it expects its net results for 2009 to be far below that of the previous year. The company will release its final numbers on November 10. Heidelberg’s stock took a steep dive at the report on Monday, losing over 20 percent of its value.
According to Reuters, “Heidelberg’s profit warning came just days before manroland and Heidelberg were to formally agree to proceed with merger talks.”