Centigram Drops Voice-Tel Purchase

Centigram Communications Corp. said it has dropped plans to acquire closely held Voice-Tel Enterprises Inc., after a decline in its stock. The San Jose-based provider of messaging systems agreed in October to issue 2.3 million shares of stock, then worth about $34.5 million, for Voice-Tel, a provider of voice messaging services. Since then, Centigram shares have skidded about 19% on lower-than-expected earnings, reducing the value of the transaction to Voice-Tel’s owners. Under the original agreement, either side could cancel the transaction if Centigram’s share price fell below $10. Centigram shares fell $1.64 to close at $12.11 on Nasdaq. Centigram disclosed the cancellation after the close of trading Monday, when it also reported net income of 10 cents a share, below estimates of 17 cents.