An interesting item of news last week that has generated significant speculation concerning inkjet printhead company Xaar was the following notificationon the Xaar Web site of an unsolicited potential offer for the company:

“Xaar plc (‘Xaar’ or the ‘Company’) announces that it has received an unsolicited approach from Danaher Inc. (‘Danaher’) in relation to a possible offer for the Company at between 200–220 pence per share in cash. After consideration, the Board rejected this approach. Whilst an offer on these terms would represent a premium of between 38.5–58.5 pence to the closing share price of 161.5 pence on 13 November 2006, more relevantly it would represent a discount of between 118–138 pence to the 12-month share price high of 338 pence. The Board views the timing of this approach as opportunistic. It continues to be confident in the longer-term prospects of the Company in a rapidly growing market, as well as in the strategic value of its digital ink-jet technology. Accordingly, the Board advises shareholders to take no further action at this time.

One has to wonder if another consumable industry leader may be interested in acquiring Xaar. The company that obviously springs to attention is Agfa. One may also question whether Kodak’s Graphic Communications Group would see the benefit.