INTERNET service provider iiNet Ltd says it is discussing a takeover of rival Netspace but a decision to proceed with the transaction is yet to be made.
Shares in iiNet, Australia's third largest ISP were placed in a trading halt at $2.23 before the market opened on Thursday as it endeavoured to respond to media reports it was set to acquire Netspace for between $60 million and $75 million.
iiNet later confirmed it was in talks with Netspace, a Melbourne-based internet and fixed telephone services provider with about 80,000 business and residential customers.
"We advise that we have been in discussions with several parties including Netspace, and note that the price currently being discussed is a long way below the price range quoted in the media," iiNet said in a statement.
"However, the discussions are at an early stage and remain incomplete, and the iiNet board has taken no decision regarding the potential acquisition."
Discussions with industry participants are held regularly, often regarding potential takeovers, iiNet said.
If there is a material development from such talks, iiNet would meet all relevant disclosure obligations, it said.
iiNet shares closed one cent higher at $2.24.
Speaking when the company released its half yearly results last month, iiNet chief executive Michael Malone said the ISP was well placed to pursue growth due to its strong balance sheet.
It has nearly 800,000 subscribers, and reached its current position in the market through an aggressive acquisition strategy.
Zombie abductee held for fraud
Poll »
TV host insults Madonna performance
| |
Fire-breather hot to beat record
Have your say »
A low blow is no laughing matter
|
Dickens still in demand at 200
Comments (4) »
Comments (2) »
Tall and tan and young and... chunky?
Photos »
Holly's sex book gets green light
Comments (26) »
Cops fed up with distracted drivers
| (15)
Police urged to follow up UFOs
Comments (33) »
Comments (1) »
Car ads rev up for Super Bowl (+videos)
| (1)21 January - 19 February
Your work activities will be renewed and you can expect a positive flow of creative new energies to make you feel better about the work that you've been... More Horoscopes »
Select your zodiac sign
Aries | Taurus | Gemini | Cancer | Leo | Virgo | Libra | Scorpio | Sagittarius | Capricorn | Aquarius | Pisces