Appen’s chief intelligence officer Richard Freudenstein has defended the company’s board and executive team from investor criticism after the sudden collapse of a $ 1,000 bid. millions of dollars dropped their shares.
Appen confirmed this week that Canadian technology giant Telus had approached with an indicative takeover bid of $ 9.50 per share, while posting a weak trading update. But just hours later, the deal had imploded and Telus told the Sydney Morning Herald and The Age on Friday that it had lost interest after taking a closer look at the ASX-listed group.
Richard Freudenstein said Appen has not yet received an explanation from Telus about the abrupt withdrawal of its offer. Credit: Pat Scala
“We maintain a very healthy and robust portfolio of mergers and acquisitions and, at any given time, our company is in various stages of due diligence with potential objectives. We are a selective acquirer and, as such, we make a sound all companies target, “a Telus spokesman said.
“In this particular case, we looked at Appen and, after an initial evaluation, made the decision to move away from our non-binding offer.”
Shares of the stock fell more than 20 percent to close at $ 6.54.
Revenue from Appen’s business update during the year so far is lower than last year and earnings will be affected.
The company said on Friday morning that it had not yet been given an explanation for the abrupt withdrawal of Telus’ offer. Telus had received a confidentiality agreement to sign days earlier, which would allow Appen to deliver market-sensitive information.
Appen earns most of its money with the collective collaboration of a global workforce of one million people doing low-level work for tech giants like Facebook, Google and Amazon. Workers teach computers to recognize basic images and speech, laying the groundwork for the development of AI solutions. Credit: Bloomberg
“Yesterday afternoon, Telus sent us a letter stating that they were revoking their offer, without giving any justification or explanation,” Appen chairman Richard Freudenstein told his AGA in Sydney on Friday morning.