SAN DIEGO — Computer & Communications Technology, which last week rescinded its $39-million sale of Zeta Laboratories to Whittaker Corp. because of apparent government contract "irregularities," on Wednesday called off negotiations to purchase Action Computer Technology.
Negotiations for Action, a privately held magnetic disk and tape manufacturer in Goleta, were dropped because of "valuation problems caused by our stock's decline" and the need to concentrate on "getting the (Zeta) situation corrected," according to CCT Chairman E. T. Bahre.
CCT's stock tumbled from a high of about 10 before the Zeta sale was rescinded to 5 on Wednesday, Bahre said.
That stock drop was generated by CCT's announcement on June 30 that it would repay Whittaker $33.6 million it received in March for the sale of an 86% interest in Santa Clara-based Zeta. CCT also agreed to pay an additional $4.5 million for shares Whittaker had purchased from other shareholders.