To: tango who wrote (2097 ) 7/18/1999 5:06:00 PM From: LABMAN Read Replies (1) | Respond to of 3243
FREESERVE for a 45% premium, bodes well for cybersurf British Telecom Dixons Manchester United Tesco Companies Mentioned Today Your Portfolio • Send us an email Everywhere News & Markets Only How to Search Freeserve set for 45% premium Patrick Hosking, Evening Standard 16 July 1999 nternet euphoria is set to send shares in Freeserve, the Dixonsowned web-access business, to a massive 45% premium, according to a grey-market price quoted today. Spread-betting bookies IG Index are quoting a spread of 202p to 209p for the closing price on 2 August, the first day of dealing. Bookies City Index were meanwhile quoting a 195p-201p spread. That compares with an indicative offer price of 130p to 150p. The 114,000 small investors who regis-tered an interest in the £1.4 billion float look set to make substantial profits even at the very top of the range. However, Freeserve is losing more than 4000 registered users a day, according to an analysis of fine print in the prospectus*. For every five new users who sign up, three desert. More than 826,000 users have left since the September launch and the figure is running at well over 100,000 a month. This so-called 'churn rate' is under intense scrutiny as analysts worry that there is nothing to stop users defecting to rival free services. A spokesman said the lost users were not necessarily deserting: they could be temporarily absent because of the warm weather or on holiday. BT, Virgin, WH Smith, Tesco and - as of yesterday, Manchester United - are among dozens of rival free service providers. Tiny Computers has raised the stakes further by offering free PCs and Internet access to people subscribing to a new phone network. Let a friend read this article ©1999 Associated New Media. All rights reserved. Terms of Use Previous Page Home News & Markets Saving & Investing Mortgages Pensions Insurance Taxes Small Business How To Spend It Experts Fact Files lm