Paradigm Geophysical (Nasdaq:PGEO) (PGEO) , engaged in software solutions for oil and gas exploration, today confirmed the existence of talks with a private investment firm concerning the possible sale of the company. Since Hebrew-language daily Ma'ariv reported talks with San Fransisco's Fox Paine, Paradigm had denied the reports and only made very general statements that there is a lot of interest in the company.
"The parties have not reached agreement on material terms, including price and structure," Paradigm said in a statement. Paradigm trades both on the Nasdaq and Tel Aviv exchanges at a $62 million market cap, but the news item purported that the talks with Fox center on $6 per share, which reflects a $100 million valuation.
The newspaper followed the item up today with a report that Shamrock, the investment arm of Walt Disney (NYSE:DIS), is demanding a higher valuation for its 11% stake and is joined in this endeavor by a smaller, 3%, shareholder.
This may be what prompted the company to add to its statement "The board believes that the parties may not reach agreement on material terms. Accordingly, there can be no assurance that a transaction will be completed, or, if completed, on what terms."
The company said it did not plan to make any further public announcements regarding the discussions until either a definitive agreement is reached or discussions end.