UK: SHARE PRICE PROBLEMS FOR FREESERVE
Article Abstract:
Having reached a high of GB[pound] 9.975 in February 2000, the share price of UK Internet service provider Freeserve has gradually been declining to reach GB[pound] 1.50 in October 2000. The earlier strength in the price was partly due to takeover talks and a plan by owner Dixons to sell its 80% stake. However, a bid by T-Online of Germany collapsed due to the high price sought by Dixons, and Freeserve has since reported losses of GB[pound] 17.8mn in the first quarter. The unmetered access offered by Freeserve has brought it 2.05mn subscribers since its launch in 1998. This is costing the company up to GB[pound] 2 per customer per month in subsidies until advertising revenue increases and the British Telecom introduces its new charging system. Freeserve also faces tough competition for its new broadband service, Freeserve Plus. At the same time, the company should benefit from its position as the leading ISP in the UK.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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Unknowns and losers make their fortune in the Internet gold rush
Article Abstract:
There is very strong interest among investors in both the US and the UK in any developments relating to the Internet. This was reflected in the fact that shares in theglobe.com, which just before the initial public offering were priced at $9 each, reached $97 at one stage before settling at $63.50 at the market's close. There is a lot about the Internet that is still very uncertain, but investors are willing to take considerable risks. Some analysts feel that the valuation being ascribed to very young Internet companies does not really make any sense at all.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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Freeserve fast buck lures the stags back
Article Abstract:
Many institutional investors are considering purchasing shares in free Internet service provider Freeserve when it is floated on Jul 26, 1999, and selling them again immediately at a premium. If this strategy proves successful, it will spark off a wave of copycat flotations of Internet service providers with very limited profits and short trading records. Such flotations would be very risky. Only 20% of Freeserve is being floated, and this will probably lead to a very high level of oversubscription.
Comment:
Has attracted attention of institutional investors
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1999
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