Comparex Informationssysteme GmbH has decided to reinstate negotiations with Hitachi Ltd (CI No 1,666), and appears confident that a deal for it to buy National Advanced Systems Europe will be finalised by the end of June. The additional conditions which appear to have led to the suspension of talks last week turn out to be a tax liability, incurred through Hitachi’s plan to resell NAS Europe, as soon as it had acquired the company from National Semiconductor Corp. The origin of the tax liability is presumably the difference between the book value of NAS, and the purchase price agreed with Comparex, which turns out to be taxable in the jurisdiction where the transfer is legally effected. Currently, neither side is willing to pay, although any tax would normally be levied on the seller, Hitachi, and not the buyer, Comparex. The proposed sale of National Advanced to Hitachi has not yet been completed, and it is unlikely to go through until the future of Europe has been settled.
