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21 November 2005 Computacenter has confirmed it has received a management-backed takeover approach, led by Sir Peter Ogden, a co-founder and non-executive director of the embattled European IT services company.

A statement by the company confirmed that discussions were at an early stage but warned that there was no certainty a definitive offer would be made.

Computacenter has been through a bruising period, having failed to match market expectations on profits. Its stock price has slumped, leaving it potentially open to hostile approaches.

But a management buyout (MBO) would give it much needed breathing space, says Richard Holway, director of IT services market watcher Ovum Holway.

"A few years out of the public glare could enable Computacenter to take the longer-term view," he said. "It should concentrate on the infrastructure/managed support area where it has developed considerable expertise."

Computacenter would not be alone in seeking protection away from the ravages of an unforgiving market for technology stocks. Geac, the enterprise software maker, was bought by private investment group Golden Gate Capital in early November 2005; Serena, a supplier of change management software, was bought for approximately $1.2billion by Silver Lake Partners.

With technology stocks still marooned, victims of their own hype and success in the late 1990s, valuations are attractive to both private equity groups and management teams.

At Computacenter, the MBO group is thought to include Philip Hulme, a non-executive director and co-founder, as well as Ron Sandler, chairman, Mike Norris, chief executive and Tony Conophy, finance director.

Any takeover would be reviewed by an independent committee, consisting of Cliff Preddy and Nick Cosh, both non-executive directors, which will be advised by HSBC Bank.