EUPHORIA that followed the announcement of a £52.9 million bid by a Dutch company for CODA, the Harrogate supplier of financial software, overshadowed its big new contract with Press Association.

The £175,000 PA deal was landed after a tough six-way tender.

The firm will supply a new finance and reporting system for PA's news, information, communication and distribution services, maintaining its role as the leading supplier of information and communications for public relations and investor relations industries in the UK and Canada.

Richard Marjoribanks, PA's group financial controller said: "The Press Association is a customer focused service organisation. We wanted to apply the same focus to the selection of new software for the finance and administration unit.

"CODA demonstrated flexibility, business fit, plus an ability to support change as we continue to grow and develop new services."

The bid to buy CODA has come from Baan, the Dutch business management software group which markets management and business planning software. It has earned approval from the Coda board and the final bow on the deal is expected to be tied by the end of June

But first Baan wants to woo at least 90 per cent of Coda shareholders with a £1.90 per share offer.

On Monday the news sent Coda shares soaring by 13 per cent to close at 185.5pence.

The deal, looked on favourably by the CODA board, comes shortly after a share price fall for Coda following its report of an unexpected £1.8 million pre-tax loss for last year, although that represented a big reduction on the 1996 loss of £4.9 million.

The takeover could at last bring stability to what has been a bumpy ride for Coda which floated in 1994 and that same year plunged to an £8 million loss. It recovered to £1m profit but fell back into the red shortly thereafter reflecting a bid to break into the US market.

Phil Dawes, head of research and development and product marketing for Coda as well as being a board member, said today the takeover would end volatile speculation in the stock markets of the past.

Mr Dawes added that there was no indication from Baan that there would be a reduction in CODA's 530 staff world-wide, including 230 at its Cardale Park headquarters in Beckwith Head Road, Harrogate.

He said: "Baan wants CODA because of its special products and experience and on that rationale there is little reason to look for consolidation in the majority of our operations."

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