Freeserve and Wanadoo get hitched
Da dum de da, da dum de da...
French ISP Wanadoo has agreed an all-share offer for Freeserve valuing the British ISP at £1.65 billion.
The offer values each Freeserve share at 157p - a modest premium of approximately 11.2 per cent based on last nights closing price of 141.25 pence per Freeserve Share.
As a result of the all-share deal, Freeserve's parent, Dixons, will become the second largest shareholder in Wanadoo with a 12.7 per cent stake in the enlarged Group.
John Pluthero, the CEO of Freeserve, will join the executive committee of Wanadoo as part of the deal.
In a statement, Nicolas Dufourcq, CEO of Wanadoo, said: "This agreement with Freeserve is a tremendous step forward in terms of our international growth strategy.
"It makes us the number one ISP provider in two of Europe's top three e-economies."
Pluthero said: "The additional resources of a large international group, combined with our ongoing relationship with Dixons will create new opportunities and accelerate the development of our core business." ®