Mystery suitor declines to bid for Clarity Commerce

Clarity Commerce Solutions says a potential buyer for its business has declined to make a firm offer.

Clarity, which produces bespoke software solutions for clients including Debenhams, has been locked in negotiations over a potential sale for several months. Another suitor, Enigmatic has already made two offers, the second values the firm at £10.5m.

Clarity's board believes that Enigmatic's improved offer still undervalues Clarity's prospects but says: "... in the absence of any alternative offer, the Clarity Board considers that each shareholder of the company should consider the improved offer and shareholders are reminded that the improved offer remains open until 1.00 pm on 27 November 2011."

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Despite declining to make a firm offer, the mystery third party has reserved its right to make one in the next six months.

Clarity made a pre-tax loss of £1.435m in the last financial year (to the end of March) and had lost 57% of its value between January and the end of August this year.

The current Enigmatic offer values Clarity at 25p per ordinary share, its price this morning had dropped 1.92% to 25.5p per share.

BS