Distribution companies Mustek and Rectron released a joint cautionary late yesterday, saying the companies are in negotiations which may affect their share prices.
The counter dropped 10c or 3.08% to 315c in early morning trade.
Both companies operate in the IT distribution market, which is still in the process of consolidating after Siltek`s liquidation late last year.
The share move today is in stark contrast to previous form, as the Mustek counter has bucked industry trends, rising 100% over the last year.
Shortly after Siltek exited the market last year, Standard & Poor`s affiliate, CA Ratings, gave Mustek a zaBB+ long-term rating and said while it fell short of being an "investment grade" in credit terms, it had a solid outlook for the next three years.
Mustek posted a R2.13 billion turnover for the 2001 financial year, R1.3 billion of the total revenue coming from the group`s home-grown PC brand, Mecer.
While no comment came from the companies, market pundits are speculating that the cautionary may mean the consolidation of the two groups.
Mustek`s interim results are expected in March.
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