(MENAFN- ProactiveInvestors) Data centre company Telecity () is heading to Silicon Valley instead of Amsterdam after it agreed to be taken over by US rival Equinix for £2.35bn.
The California–based company has seemingly won over the Telecity board which had previously been in favour of a £3bn all-share merger with Dutch firm Interxion.
Telecity's board is recommending acceptance of a 572.5p cash plus shares offer worth around 1145p per share.
The deal means Telecity’s intention to merge with Dutch firm Interxion is dead in the water but could there be a new last-minute bidder Broker Numis doesn’t think so.
“We do not expect a counter bid; we think EQIX probably has the deepest pockets and greatest synergies of any potential bidder” it said.
Shares in Telecity eased 4p to 1088p today.
In other news the FTSE 100 was 16 points higher at lunch to 7057 on a relatively flat day for equities.
Still it fared better than its European cousins with the French CAC easing 20 points to 5116 and the German DAX falling 37 points to 11640.
Concern persists for Greece as its claim that a deal would be completed by the weekend is rapidly running out of time.
Talks on a possible third bailout can only restart if “substantial” differences between Greece and its creditors are resolved European Union economics commissioner Pierre Moscovici said.
Meanwhile David Cameron is in talks with Angela Merkel to negotiate revised terms on the UK’s pact with the EU.
In equities shares in Primark owner () were on the rise today after heavyweight broker Goldman Sachs released a bullish statement on the company.
It is taking its Primark brand to the states with a September launch of a new store in Boston which Goldman says could be worth £720mln to its earnings by 2020. Shares climbed 2.4% to 3021p.
Meanwhile miners were hit by panic selling in the Chinese markets.China stocks continued to be sold off overnight - falling as much as 3.5 per cent after plunging 7 per cent a day earlier.
() led the fallers on the FTSE 100 today as it is heavily influenced by Chinese data. Shares eased 1% to 1024p.
In small caps () was the big riser after it swung to a profit in the first half of the year.
A foreign exchange gain of US$665000 helped the company record a profit of US$482000 compared to a loss of US$271000 for the same period in 2014. Shares jumped 40% to 1.9p.
Conversely Sefton Resources () dropped 27% to 0.18p after Jim Ellerton a former executive chairman lodged a complaint against the company claiming unspecified damages in connection with his resignation from the board.
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