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Dampen and denies are totally different.
It was always FAKE NEWS
Sounds like Kyndryl got cold feet.
[Entire article quoted below].
Kyndryl (NYSE:KD) last Thursday appeared to tone down a report from June that the company and Apollo Global (APO) were in talks for a joint bid for the information technology services firm DXC Technology (NYSE:DXC). DXC is set to report its Q1 results and conference call after the close on Thursday.
Apollo and Kyndryl (KD) discussed an acquisition offer for DXC (DXC) of between $22 and $25 per share, according to a Reuters report in June. DXC is separately running a process to sell its insurance software business for more than $2 billion, and may opt to remain an independent company, according to the report.
On Thursday, Kyndryl's (KD) CFO David Wyshner said during its Q2 earnings conference call that the company didn't need acquisitions to execute its growth strategy and that the company would continue to focus on "small tuck-in" deals.
"Our target has been to keep net leverage below one times adjusted EBITDA, and we ended the quarter at 0.86 times," Wyshner said. "In terms of M&A, we do not need acquisitions to execute our growth strategy, So we will continue to be very selective, focusing on small tuck-in acquisitions like Skytap that complement our existing expertise and opportunities. "
Kyndryl (KD) CEO Martin Schroeter made similar remarks on the Q2 call. Both executives didn't specifically comment on the DXC speculation.
"As we said before, you know we are focused on our balance sheet in the form of making sure we maintain investment-grade and make sure we have the right liquidity to support the business," Schroeter said on the call. "And I think our words on the topic match kind of the actions."
The Reuters report came after Betaville in February said that there was speculation that DXC had attracted renewed takeover interest. DXC last March said that it was approached by a financial sponsor about a takeover, though no formal proposal was ever received and DXC terminated discussions.