iiNet confirms Netspace takeover talks
- — 11 March, 2010 13:08
Internet service provider iiNet Ltd says it is in discussions with rival Netspace about a takeover but no decision has been made to proceed with the acquisition.
IiNet confirmed it was in talks following a report in the Australian Financial Review on Thursday that it was to purchase Netspace for between $60 million and $75 million.
"We advise that we have been in discussions with several parties including Netspace, and note that the price currently being discussed is a long way below the price range quoted in the media," the company said in a statement.
"However, the discussions are at an early stage and remain incomplete, and the iiNet board has taken no decision regarding the potential acquisition."
iiNet says it regularly holds discussions with industry participants, often regarding potential takeovers, as part of its assessment of strategic options.
If there is a material development from such talks, iiNet will meet all relevant disclosure obligations, it says. iiNet shares were down three cents, or 1.35 per cent, at $2.20 at 1242 AEDT after resuming from a trading halt requested earlier on Thursday.
Melbourne-based Netspace provides internet and fixed telephone services to about 80,000 business and residential customers.
