Micro Focus takeover talks end with no deal

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Micro Focus International has called off takeover talks after bids for the business fell short of expectations, the IT firm said as it announced its plans yesterday to resume a share buyback programme.

The company, which supports mainframe computer applications for businesses like the supermarket giant Tesco, said in May that it was exploring a number of approaches.

"The board set a deadline for final offers of August 19, 2011. Based on feedback now received from these parties, the board has terminated discussions and, as a result, Micro Focus is no longer in an offer period," it said.

Last week, shares in Micro Focus rose after Hewlett-Packard's blockbuster £7bn bid for FTSE 100-listed Autonomy ignited investor interest in the European software industry. Shares in Micro Focus closed at 263p apiece on Friday, valuing the business at about £520m.

The FTSE 250-listed company said that its share buyback programme would resume with immediate effect. It currently has shareholder authority to buy back up to 12.3 million shares, and has around £68m of distributable reserves.