LP Lammas has pulled the plug on a HK$12.9 million agreement to buy information technology services from BonVision Technology and backed off its plan to use technology to transform its traditional investment banking operation. The HK$12.9 million accounted for 55.9 per cent of the HK$22 million net proceeds from the firm's listing on the Growth Enterprise Market in December last year. The deal was a core part of the company's business development strategy in the listing prospectus. LP Lammas said then it wanted to use technology to enhance operational efficiency. The mid-size mergers and acquisition (M&A) deal-maker yesterday said it had terminated the agreement under which BonVision was to supply much of the technology, because of reduced demand from companies for information technology. 'The company has made reference to the United States mid-sized M&A market in February 2001, which shows that the prevailing marketing practice is slow in adopting information technology for business development,' it said. Analysts said the deal could also have collapsed because of the sharp plunge in LP Lammas' share price since listing in December. Under the deal, BonVision was to receive 10 per cent of the HK$12.9 million in LP Lammas' new shares at the listing's placement price and the remainder in cash. In addition, BonVision was entitled to options which would have given it the right to subscribe to 800,000 shares at between 1.15 and 1.3 times the placement price. LP Lammas' share price closed unchanged yesterday at 7.5 HK cents, 62.5 per cent lower than the placement price of 20 HK cents. It has fallen 87.9 per cent in the past month. The company has kept the HK$12.9 million on fixed deposit at a financial institution and the directors have yet to indicate how they plan to reallocate the funds.