Thu, 15 Jul 1999, 5:57am EDT
Freeserve IPO Is Overvalued, According to Broadview Associates
London, July 15 (Bloomberg) -- Broadview Associates LP, a
U.S. investment bank, said the 1.3 to 1.5 billion pound ($2.04-
$2.35 million) initial public offering valuation for U.K.
Internet service provider Freeserve is too high, the Financial
Times reported, citing Victor Basta, Broadview's London-based
managing director. Freeserve, a subscription-free service
launched by U.K. electronics retailer Dixons Plc, offers no
portal service or content to its customers, even though it is
valued at about $1,500 a user, more than U.S. companies such as
Yahoo! Inc., the bank said. Broadview said Freeserve must
''reposition itself very quickly as a portal'' to justify its
valuation, the FT reported.
Freeserve, the U.K.'s largest Internet provider, is unlikely
to post a profit in its first year, the company said June 22.
(FT 7/15 18 www.ft.com)
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