(Reuters) -Payments services provider Lumon Acquisitions said on Friday that it does not intend to make an offer for Argentex after the currency risk management firm rejected an earlier bid. WHY IT'S
Pollen Street's Lumon drops takeover pursuit of UK's Argentex
(Reuters) -Payments services provider Lumon Acquisitions said on Friday that it does not intend to make an offer for Argentex after the currency risk management firm rejected an earlier bid.
WHY IT'S IMPORTANT
Argentex became one of the first known casualties of the market turmoil caused by U.S. President Donald Trump's erratic trade policies after the sharp drop in the dollar squeezed its finances in late April.
CONTEXT
Lumon, part of British private equity firm Pollen Street Capital, joins Argentex's former CEO Harry Adams and Irish entrepreneur Terry Clune in dropping their bid to acquire the British company.
Adams and Clune also said on Thursday that they would not make an offer for the firm.
Argentex had rejected bids from Lumon as well as from Adams and Clune in favour of an offer from cross-border payments provider IFX Payments valuing it at about 3 million pounds ($4 million).
MARKET REACTION
Shares in AIM-listed Argentex, which have lost more than 90% of their value so far this year, were down 2.3%.
($1 = 0.7424 pounds)
(Reporting by Simone Lobo and Yadarisa Shabong in Bengaluru; Editing by Mrigank Dhaniwala)
