Ironically, just over a year after talks between Ferrari Holdings Plc and MBS Plc fell apart (CI No 1,318), the two companies have confirmed that they are once more holding talks to merge. There has been speculation that one of the reasons the talks broke down was because of a personality clash between the then managing director of Ferrari, Bob Woodland and Owen Williams of MBS Plc. However, Woodland is no longer with Ferrari and the company’s managing director is now Peter Marshall. It is believed that the current merger talks are being held at the behest of Singer & Friedlander which holds a 49% stake in Ferrari. Ferrari was created by the micro distributor reversing into terminal manufacturer Cifer Plc at the beginning of 1989. At that point Ferrari had three main businesses: computer systems and services for large corporate customers, the distribution of software and networking products, and a logistics business for customers such as IBM and South Western Bell Telecom. Following the merger with Cifer, Ferrari became aggressively acquisitive, taking over UCL Group Plc – of that group the company sold off the Pick business to Sanderson Electronics Plc and kept the computer systems and maintenance divisions. Ferrari also took over the Message Data Switching Division of Commercial Cable (UK) as well as Blue Chip Systems Group Plc an information management systems company specialising in the property market. In November 1989 Ferrari took a 30% stake in Telecomputing Plc, which thanks to the ubiquitous Mike Whitaker of Singer & Friedlander, is now focusing on its transaction processing software. The latest major acquisition was in March when Ferrari acquired Pericom Plc’s maintenance business (CI No 1,396). At the interim stage Ferrari announced pre-tax losses of UKP390,000 against a profit last time of UKP604,000 on turnover up 90% at UKP27.5m (CI No 1,557). MBS Plc, now known as the Touchstone Group Plc, is the maintenance rump of MBS that was left after the product sales business went in a management buyout. Touchstone added to its business over the year by acquiring motor dealer software house VISIsystems Plc and maintenance specialist Exchange Telegraph Co Ltd. At the interim stage Touchstone made a pre-tax loss of UKP562,000 on turnover off 85% to UKP10m (CI No 1,528). Gossip has it that Ferrari is looking for a way to repay its debts of UKP5m and if this proposed merger falls through it may have to try for a rights issue in very inauspicious circumstances. Ferrari’s shares rose up 1 to 11 pence on the news of talks.
