* Trading in first quarter better then company expected
* Says takeover talks continuing
LONDON, Aug 10 British IT firm Micro Focus
International said it was more confident it could turn
around its business after a better-than-expected first quarter,
strengthening its hand in ongoing takeover talks.
The company, 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.
It said on Wednesday that trading in the three months to
end-July was similar to the same period a year ago, measured in
constant currency, while core earnings were better then it
expected, helped by cost savings.
Executive Chairman Kevin Loosemore said he was pleased with
progress during the four months since he took over at the
company towards the end of a "disappointing" year, which fell
short of expectations.
"I am increasingly confident that there is significant
untapped value in the business which can be realised by
delivering the proposed operational turnaround and this is the
primary focus of the management team," he said.
"At the same time we continue to explore the possibility of
a transaction consistent with the underlying value of the
business to deliver that value to shareholders more quickly."
(Reporting by Paul Sandle)