Current Account: Current Account was not surprised to find market traders speculating about a possible takeover of the Howth-based travel software firm Datalex this week.
The firm, which got caught up in the storm surrounding the airline and travel sector in the wake of the September 11th terrorist attacks in the US, has finally got its act in order over the past year.
Reduced headcount along with other cost-cutting measures, which included the closure of overseas offices, enabled the firm to announce this week a halving of pre-tax losses to $5.6 million (€5.1 million) for the first six months of the year.
And unlike that other "Irish techie" firm, Trintech, which is struggling to deliver growth in the wake of deep cutbacks, Datalex saw turnover jump $3 million to $14.6 million in the first half of 2003.
With pre-tax profits on the horizon for early 2004, Datalex is becoming an increasingly attractive proposition for investors - including financier Mr Dermot Desmond, who bought into the company earlier this year at a price of 37 cents a share.
Speculation about a management buyout has been consistently denied but market sources believe the company could become a target for a big international firm.
One of the big attractions for a predator is the $36 million cash sitting on Datalex's balance sheet, substantially more than its €29.5 million market capitalisation.
Market sources believe these cash reserves could push any asking price for Datalex up to at least 75 cents per share, a significant premium on yesterday's closing share price of 45 cents.
With the recent trend towards consolidation in the technology sector, perhaps this time speculative market gossip will reward investors with an actual bidder.
Bank of Ireland must be wishing the days away
Bank of Ireland must wish the clock could tick a bit faster on the messy industrial wrangle that has been infecting its IT division for much of the year. The desire to speed things up will become particularly strong from today, when the workers tied up in the row will be asked to choose between an imminent resolution and all-out IT stoppage to take place next January.
While small in scale, the one-day strike held at the start of this month was far from helpful in publicity terms. Current Account shudders at image problems that could flow from more concerted action.
The bank is apparently feeling something similar, for it has written to the Irish Bank Officials' Association, offering absolute confirmation that it will honour the terms of the proposals drawn up by mediator, Mr Kieran Mulvey, last week.
If that was not enough, it has also assured the union that it has discussed the guidelines with Hewlett-Packard, where the affected IT staff are due to begin work after the dispute ends. Somebody has rather sensibly decided to take no chances.
Unfortunately for the bank, the result in today's ballot will not be available for another agonising week at least.
In the meantime, the power lies in the hands of a few hundred workers, all of whom will be aware of the havoc that could flow from a simple tick on a ballot form.
Glanbia not in demand
Glanbia results drew a muted response from the market, with little demand emerging for the stock despite its bullishness about future prospects in the ingredients sector.
There are two schools of thought regarding sentiment on the stock. One attributes the fall in prices in recent days to an exodus by short-term investors disappointed by the failure of growth in the ingredients side of the business to emerge in the first half of 2003.
The second blames what some stock market sources call the company's perennial exceptional charges for disillusioning certain loyal investors.
While it is undeniable that Glanbia has suffered a rash of charges in recent reporting periods, these have been related to a fundamental restructuring of the business as well as to some genuinely unforeseeable events - the Roosky fire among them.
These should now be coming to an end and it seems somewhat premature to write off advances in the company's chosen areas of expansion.
