Failed bid leaves OzEmail still for sale
- 01 June, 2000 22:00
The future of Auckland ISP Voyager is up in the air with the collapse yesterday of a bid to buy its parent company, OzEmail.
OzEmail's owner UUNet yesterday announced it was withdrawing from the troubled deal for Australian ISP Eisa to acquire OzEmail.
"Under the agreement, Eisa was required to have financing commitments in place last month. It is clear that Eisa is not in a position to meet that requirement," UUNet said in a statement.
Eisa's intended acquisition of OzEmail, worth an estimated $A350 million, came to grief earlier this week when Fairfax online division f2 announced it had ended its memorandum of understanding with Eisa.
According to the deal, f2 was to pay $40 million to acquire a 5 per cent equity stake in Eisa at $2 per share.
Further strife hit Eisa yesterday, as market spectators watched shares plummet well below 40 cants today, following Wednesday's announcement that Eisa chairman John Pascoe and director Michael Ball had both resigned for medical reasons.
Prior to the stock market crash, Eisa shares were trading as high as $3.18, before plunging to 93 cents on the morning of April 17.
Other funding for the OzEmail acquisition was to come from Mike Fitzpatrick Hastings Funds Management, ANZ and Disney.
UUNet said in its statement that it would consider other offers to sell off OzEmail "if the right opportunity was presented".
UUNet refused to comment and Eisa did not return IDG's calls.