The statement by QXL.com of yesterday reads:
“QXL.com plc has received certain
information from ricardo.de AG in the period following the
announcement of the proposed transaction on May 16, 2000. The Board
of Directors of QXL.com is evaluating the implications of this
information on the proposed transaction. A further announcement
will be made in due course.”
QXL.com today told OUT-LAW.COM that it would not add anything to
this statement and that it could be a few days or as much as two
weeks before any further information is released. There have been
rumours that Ricardo is short of cash, but these have been denied
by the German company. It recently said it expects to break even
next June and that it has enough cash to stay afloat until
then.
The proposed merger would have created a major internet auction
force in Europe, allowing QXL.com to leapfrog the value of US
auction giant eBay. In May, Ricardo’s CEO described the proposed
merger as “a historical moment for e-commerce in Europe.”
Following yesterday’s announcement, shares in Ricardo.de fell
20% and shares in QXL.com jumped by 15%. This means that Ricardo is
now well below its valuation in terms of the original offer by
QXL.com, which had valued the German company at £668 million. It’s
current market capitalisation is down to £219 million.
