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How Scop avoided a merger, in full crisis, through massive cost cuts

Publicat la 10.08.2009, 21:00:00

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How Scop avoided a merger, in full crisis, through massive cost cuts

These measures allowed the company to withdraw, for the time being, from merger talks initiated with two other players, Tornado and RHS, whose purpose was a higher operating efficiency and a consolidated position on the market.

“When you see the market is going down, you think there will be pressure on prices, and then you must cut operating costs. In the merger talks, we considered joint logistics, which is a usual practice. In the end, we managed to cut costs by ourselves and avoided this move, also because of the economic context,” the Chief Executive Officer of Scop Computers, Horia Chitu, told Business Standard.

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