Wanadoo bids for FREE:
internetnews.com
Wanadoo, No Longer a Wannabe, Buys Freeserve
By John Lewell
[London, ENGLAND] Wanadoo, the Internet arm of France Telecom, announced Wednesday a bid
for the entire share capital of Freeserve, the largest Internet service provider in the U.K.
The acquisition values Freeserve at £1,651 million (US $2,360 million), a premium of around 11.2
percent on the closing price Tuesday.
If the offer becomes unconditional in all respects, up to 236.4 million new Wanadoo shares will be
issued. The current offer is made on the basis of 0.225 of a new Wanadoo share for each Freeserve
share held.
Electrical retailer Dixons, which originated Freeserve and held 80 percent of the equity after spinning
off the ISP, will become the second largest shareholder in Wanadoo with a 12.7 percent stake in the
enlarged group.
Dixons' directors have accepted the offer, which will now go before a shareholder meeting to be held
on January 11, 2001.
Nicolas Dufourcq, chief executive of Wanadoo, said the acquisition was a tremendous step forward
for Wanadoo's international growth strategy, making the company the number one ISP provider in two
of Europe's top three e-economies.
"The combination of the two management teams will bring significant benefits to the customers of both
companies as well as added value to our shareholders," said Dufourcq.
Dufourcq added that the transaction will also benefit France Telecom, Wanadoo's parent company
which has ambitions to become one of Europe's Internet leaders.
Freeserve Chief Executive John Pluthero commented that the additional resources of a large
international group and a continued relationship with Dixons would create new opportunities and
accelerate the development of Freeserve's core business.
Pluthero will join Wanadoo's executive committee once the acquisition is finalized.
Wanadoo currently has around 1.8 million users, and will more than double its base with the addition of
Freeserve's 2 million subscribers. |
