Danka launches bid for SBG

Danka Business Systems, the photocopier and fax machine supplier, has launched a £67.6m bid for its South-east England based competitor Southern Business Group.

SBG's directors are recommending the offer, despite having received an £80m offer from Berkeley Business Group, the business services company, earlier this month. Danka's offer is entirely cash, whereas the Berkeley offer is part cash, part shares. SBG's directors have given irrevocable undertakings to sell their shares in the company. The undertakings cease to be binding if a higher offer emerges.