Eurocontrol Technics Ord EUCTF

Austin Al

[marketsense]

Very interesting post.  I recall this company was mentioned last year in a post about trying
to strike a deal for a merger but failed.  At this point in EUO's growth,  why would they need 
a private company to distribute their Xenemetrix products and I assume give up some profit
margin for doing so.  They've got the royalty stream and the exclusive sales contract for
Xenemetrix with SIPCA already locked up and now they've also got the cash for a deal.
Buying Austin Al out would immediately make EUO more profitable but it would also help
clear the air of overlapping complexity and competition for Xenemetrix.  Makes a lot of sense
and would seem like a very smart move on their part.  Any comments?

[thedon]

When this LOI was being evaluated, the CAD was at about 88 cents, vs the current 74.   I don't know if rates were considered as a factor back then but we can now look at it in hindsight.  The deal might have gone through with the cash EUO has available now.  But it must be more difficult for AI to sell their product now with the much higher USD?

[marketsense]

Sure, might cost them more for a merger but maybe not if their sales are suffering.  The quick  fix for slow sales because of the high US$.......Lower the price to compensate and start moving  your product.  It's businesss 101 but somehow nobody wants to do it.  If you want to stay in business these days, you had better be flexible, unless you have an exclusive