RealTime IT News

LibertyOne Douses Rumor Flames with Staff Freeze

[Sydney, AUSTRALIA] While U.S. based CyberSentry has officially confirmed it has made an offer for any and all outstanding shares in Web media developer LibertyOne, the company has denied any imminent takeover and reportedly placed a freeze on all employees.

Under the reverse takeover which might finally allow LibertyOne to achieve its goal of a U.S. stock exchange listing, CyberSentry has proposed to exchange one of its own shares for seven LibertyOne shares.

While CyberSentry issued a statement saying it was preparing the offer, LibertyOne acknowledged reports of such a deal, but advised its shareholders to take no action.

The offer is due to commence by September, subject to LibertyOne's approval.

The company attempted to list on the Nasdaq three times, but has been prevented each time. Should it join with CyberSentry, it may only list on the American Stock Exchange.

Meanwhile, an industry source has confirmed there has been a freeze placed on the recruitment of any staff at LibertyOne. "Within the Australian and overseas sites, any position unfilled at present is on hold, even though this means resources are strapped at some sites," they said.

According to the source, this could indicate one of two things. "A restructure due to takeover, therefore positions would be re-evaluated within the company or the company is near death and they can not afford to put anyone on," they said. "I think I will bet on the latter."

LibertyOne had earlier denied rumors that it was planning to merge with Sausage Software, and has moved to deny any merger with CyberSentry, in which it holds a small stake, despite the share issue offer.