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RealTime IT News

Telco Snaps Up Troubled Market Faxts

[Sydney, AUSTRALIA] Telco Australia Limited has announced that it will make a proportional off-market takeover offer for 80 percent of all of the ordinary shares on issue in Market Faxts Limited.

Telco will offer two Telco shares for five Market Faxts fully paid ordinary shares. The junior telecommunications company's present intention is to keep Market Faxts as a listed company.

The takeover bid follows a Market Faxts announcement that its forecast loss for the year to December 31 will be $2.33 million, up from a prospectus forecast of $0.99 million. "Directors' revision of the forecast has been caused by the slower-than-anticipated roll-out of the company's new InfoChoice Web sites during the six months to June 30," the company said.

Telco described its offer as "highly attractive, representing a premium over the prevailing Market Faxts price and reflecting full and fair value to Market Faxts shareholders. This is a strategic opportunity for Telco, in particular Market Faxts proposed travel and shopping choice sites fit neatly with Telco's investments in Enjoy Travel.com and ShopSmarter."