Jeff,
Story in full below.
Some sort of hogwash.
The Mirror is running another positive story tomorrow so expect to see gains in the UK first thing.
It is worth reading my earlier post.
Regards
Jon C
Edited by Paul Farrelly
Sunday June 6, 1999
Dodge Dialog
The bear raiders have their claws out again for Dialog Corporation,
the troubled online information outfit run by larger-than-life
entrepreneur Dan Wagner.
The firm, formerly known as Maid, has still to resolve its debt crisis
after taking over the struggling Knight Ridder financial news agency
for £260 million in 1997.
Dialog, which is labouring under £155m of debt, has been crippled by
interest charges ever since it was way too optimistic on revenue
growth.
For the moment, at least, there appears to be nothing to the latest
market rumour - that Dialog may seek Chapter 11 administration in the
US. Three weeks ago the company bought itself some breathing space,
with bankers Chase Manhattan advancing more money. It is also
incorporated over here, not over there.
However, historically the bears have called Dialog right - largely on
the back of Wagner's own exuberance.
Ridiculous stories like another last week - that a £1m computer
purchase heralded a lucrative deal on that talisman, the Internet -
are only grist to the bears' mill.
Some sort of technology licensing deal may be due in the next month,
but with beasts like Reuters around, Dialog may very well yet fail.
The shares, at 109p, shot up 24p last week and should be avoided like
the plague.
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