Select Software Tools has entered into exclusive preliminary discussions with Base Ten Systems "to explore the possibility of a business combination".
The two companies did not specify whether this would involve merger, takeover, or a strategic partnership alliance, but both of their share prices fell on the news.
Select, which sells component development tools, saw its stock price drop $0.0313 to $0.1875 by market close, while Base Ten, which provides applications and services for the pharmaceutical, chemical and medical industries, saw its plummet $0.938 to $1.125.
The move follows Select's attempts at refinancing last year to keep itself afloat (see VNU Newswire, 4 September, 1998), following rumoured takeover attempts by Microsoft and Inprise, formerly known as Borland, and a steadily worsening set of financial results (see VNU Newswire, 4 August, 1998).
A Select spokesman said at the time: "We secured additional financing, so that we don't have to put the company up for sale and can continue to operate. The money will be used for day to day operations and has not been earmarked for anything specific at the moment."
Both companies refused to comment on the discussions.
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