IT MERGER TALKS BOOST INDEX

SPECULATION of a partial merger between two of South Africa’s biggest information technology firms pushed the IT index up sharply on Monday despite lingering Y2K fears. Under speculation are Comparex Holdings Ltd and Dimension Data Holdings Ltd (Didata). The Business Day reported on Monday that the announcement of talks by both companies has fuelled speculation of the creation of an offshore company worth R25-billion or that Didata would acquire Comparex’s European subsidiaries. Comparex has gained nearly 20% since it put out a notice to shareholders on September 23 advising them it was in talks. Didata gained almost 11% over the same period despite putting out a notice that it was in talks on September 28.