* Ends talks with Bain Capital, Advent International
* To resume share buyback immediately
* To review options to raise distributable reserves
LONDON, Aug 21 (Reuters) - British IT company Micro Focus
International said it has called off takeover talks
after bids for the business fell short of expectations and will
now resume a share buyback programme.
The firm, which supports mainframe computer applications for
companies like Tesco , said in May it was exploring a
number of approaches, including from U.S.-based private equity
firms Bain Capital and Advent International.
"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 in a statement.
Earlier this month the firm posted better-than-expected
first quarter trading.
Last week shares in Micro Focus rose after Hewlett-Packard's
$11.7 billion bid for Autonomy ignited investor
interest in the European software industry.
Shares in Micro Focus closed Friday at 263 pence, valuing
the business at about 520 million pounds ($862 million).
The firm said its share buyback programme would resume with
immediate effect. It has shareholder authority to buy back up to
12.3 million shares and has $112 million of distributable
"The board is reviewing its options to enable the group to
increase the amount of distributable reserves and will consult
with shareholders on the optimal use of the group balance
sheet," it added.
($1 = 0.603 British Pounds)
(Reporting by James Davey; Editing by Hans-Juergen Peters)