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To: Eric Wells who wrote (77998)	9/22/1999 5:21:00 PM
From: Glenn D. Rudolph	Respond to of 164684

FOCUS-QXL Web auctioneer knocks down sale price (Adds interview with chief executive) By Ben Hirschler and Richard Meares LONDON, Sept 21 (Reuters) - Online auction house QXL.com said on Tuesday it was coming to market at a price well below analysts' expectations, reflecting a sharp downturn in European Internet stocks. The British-based company said it would issue new shares representing a quarter of its enlarged capital at 180-205 pence each, valuing it at 212-242 million pounds ($344-393 million). Prior to the announcement, analysts saw the initial public offering (IPO) giving a price tag of 250-350 million pounds. Back in July, when the flotation was first mooted, media reports suggested QXL could fetch twice even that amount. "It's well below what people were expecting though a little above our fair value of 150-200 million," said Miles Saltiel, technology analyst at WestLB Panmure. "Obviously it's a consequence of the weakness in Internet prices around Europe. Of 12 IPOs onto European bourses since June, all but two are trading below the price reached on the first day of trading. The average fall is 23 percent," he said. Chief Executive Jim Rose told Reuters QXL looked at market conditions, growth prospects and comparable companies such as eBay Inc of the United States <EBAY.O> before setting the price. "We are comfortable with where the range is now," he said. The pan-European auction house will be one of Britain's biggest Internet-linked listings -- and will give founder Tim Jackson, an ex-journalist, over 36 million pounds on paper. The exact share price will be announced on October 7 after book-building -- itself a kind of auction among institutions. Conditional dealings on the London Stock Exchange and on Nasdaq in the United States will begin the same day. Some 15,000 private investors have registered to apply and if overall demand is strong QXL may issue extra shares. FREESERVE WOES HIGHLIGHT UNCERTAINTY Shares in Britain's largest Internet company, Freeserve Plc <FRE.L>, sank below their 150p July launch price for the first time on Monday and lost another 11 percent by 1000 GMT on Tuesday to 131p, reflecting uncertainty about the sector. Exchange Holdings Plc <EXC.L>, Britain's second major Internet stock, sank six percent to 178-1/2p, more than a tenth below its 200p issue price in August. The setback in UK Internet stocks -- badly timed for QXL -- comes as several other companies are waiting in the wings. Buy.co.uk, offering consumer information on top-value offers to cut household bills, said on Tuesday it would list next year. Lastminute.com, selling flights, holidays and other goods at the 11th hour, will also go public but has not said when. Rose said two-year-old QXL, whose initials were chosen to sound like quick sell, was rooted in e-commerce trading and had nothing in common with Freeserve but the Internet. He said flotation funds would be used for branding, publicity and expansion. The company employs 68 people. QXL, whose user numbers jumped to 210,000 last month from 133,000 in June, had net revenues of 2.5 million pounds in the year to March and an operating loss of 2.1 million. It conducts business-to-consumer and so far commission-free consumer-to-consumer auctions from French, German, British and Italian websites. Goods include computer products, electronics, appliances, collectibles, travel items and sports goods. Analysts say it has a head start in a key Internet sector but faces increasing competition from eBay, the U.S. online auctioneer expanding into Europe, and others such as FairMarket, a new auction network linking big names like Microsoft <MSFT.O>. QXL.com's backers include French businessman Bernard Arnault's Europ@web and venture capitalists Apax. ($1=.6163 Pound) REUTERS Rtr 06:34 09-21...