Positivo denies market rumors again

Wednesday, April 6, 2011

Brazilian computer maker Positivo Informática (Bovespa: POSI3) has come out once again to deny market rumors of a tie-up, this time regarding a possible merger with fellow PC maker Itautec and IT firm Bematech, online news source IT Web reported.

Positivo has consistently had to make statements to discredit market rumors, usually about its supposed purchase from Chinese firm Lenovo but also regarding similar M&A rumors involving HP.

This time around, President Dilma Rousseff was rumored to be interesting in forming "a large Brazilian technology conglomerate" and was supposedly looking to turn to national development bank BNDES to fund the tie-up of the three companies.

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However, Positivo was emphatic in its rejection of this rumor, while Itautec reportedly pledged ignorance of such a rumor circulating.

The market rustling could have been a result of local IT firms' poor performance and their need to shore up market share. Positivo's Q4 profits fell 74.4% year-on-year to 12.3mn reais (US$7.4mn at the time) as international competition caused a drop in PC prices. Positivo's revenues from 4Q09 to 4Q10 slid 3.9% to 590mn reais.

Meanwhile, Itautec posted a net loss of 13.8mn reais in Q4, compared with a net profit of 21mn reais in the year-previous period, with results also dragged down by a drop in sales. And Bematech saw net profits drop 14.7% year-on-year to 9.4mn reais in Q4, as revenues were also down 12.4% to 81.7mn reais.