Mitel to acquire part of Gandalf
NEPEAN, Ontario, Aug 8 (Reuter) - Financially troubled Gandalf Technologies Inc said on Friday telecommunications firm Mitel Corp
agreed to acquire its technology business assets for US$14.9 million cash.
The acquisition leaves Gandalf, under creditor protection, with its services and maintenance business. Gandalf added it continues to pursue
a restructuring plan for its remaining assets.
Mitel will keep a number of Gandalf workers and operate the unit as a Gandalf-branded division. Both firms are headquartered near
Ottawa.
Gandalf, which has been seeking to sell all or part of its computer equipment making business for months, saw its shares suspended
yesterday from further trading on the Toronto Stock Exchange.
Ralph Shay, the exchange's vice-president of listings and regulation, said rules allow the exchange to halt trading stock in a company,
under bankruptcy protection, which is questionable as a going concern.
Before the suspension on Thursday morning Gandalf shares rose 0.055 to 0.29 on 80,600 shares, well below a year high of 10.50.
On Nasdaq Gandalf shares have been halted since July 25, the day it filed for relief from creditors. |
