How much do you want to bet?->Net2Wireless firing half its staff after canceling merger with Sensar
10.12.2000 | 09:46
TheMarker.com
After canceling its plans to merge with Salt lake City-based Sensar Corporation (Nasdaq:SCII), Israeli startup Net2Wireless has fired a third of its staff, Ma'ariv reports.
The company fired 50 workers in the last few days, the paper writes.
Over the last several days Net2Wireless, chaired by ex- ECI Telecom (Nasdaq:ECIL) leader David Rubner, has withdrawn from mergers with Sensar and with Israeli startup Contact Networks, previously considered to be one of the hottest Internet companies in Israel.
Net2Wireless was supposed to buy Contact for $20 million, which would have averted its collapse. With the deal dead, Contact was forced to close its doors and fire all of its employees.
Last week Nasdaq announced that if Sensar went ahead and merged with Net2Wireless, it would be delisted. In return for release from its obligations under the merger agreement wiht Sensar, Net2Wireless has agreed to allocate Sensar 3 million shares and an option to buy another million shares at $10 each. That price is significantly lower than $27, the price per share at the company’s latest placement. For its part, Sensar will write off a $500,000 loan to Net2Wireless and will pay $1.5 million in cash for a some of the shares issued to it by the Israeli company.
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