More consolidation?
A couple of HEXUS.channel sauces dribbled in our collective ear that Arrow Electronics, the giant US distributor that owns Microtronica in the UK, is looking to buy Bell Micro, another large US distie.
The rumour apparently surfaced after the news that credit insurer Euler Hermes has withdrawn its cover from Bell Micro Europe with immediate effect. Our sauces received a letter from Euler last week warning them that the move would come into effect from today.
Bell Micro had its stock delisted from the NASDAQ last March due to a non compliance with its listing requirements. The NASDAQ had demanded that certain reports be filed with the Securities and Exchange Commission (SEC) by 17th March and when it didn’t do so it was delisted.
We contacted Arrow to ask them if the rumour is true but were unsurprisingly told that they don’t comment on rumour and speculation regardless of the topic. (wink)
We also contacted Euler Hermes for confirmation of its withdrawal of insurance from Bell Micro and were told: “We do not comment on specific cases to protect the commercial interests of our clients. Our risk teams regularly review limits across all sectors and organisations and occasionally we alter or withhold from writing further cover to protect our clients. All decisions and analysis is monitored continuously.”
If this rumour is true, it could be the first of the round of consolidation in the distribution sector that has been widely predicted.
