Out-Law News 1 min. read
08 Sep 2000, 12:00 am
Of the 6.1 million registered subscribers, 3.5 million are active users. The merger will form a pan-European internet network company providing new telco, media and e-commerce services to the largest pan-European customer base. The Combination will maintain the Tiscali name and its headquarters in Italy. Renato Soru, the founder of Tiscali, will be Executive Chairman with James Kinsella, currently Chairman of World Online, becoming Chief Executive.
Tiscali believes the merger will mean cash savings of £330 million over the coming two years.
Shares in both companies rose in early trading today following the announcement of the biggest consolidation in the European internet market. However the offer price is less than half the price investors paid when World Online floated in March. The company has since had a troubled six months.
World Online floated on 17th March but the shares fell sharply following allegations that founder Nina Brink sold two thirds of her stake in the company in advance and at a fraction of the offer price without declaring her sale. This led to the raising of a class action on behalf of investors. Ms Brink was forced to resign.
James Kinsella, Chairman of World Online, said of the deal:
"It is not an end in itself, but rather a platform for further expansion as together we build Europe’s leading internet network company… We are now well positioned to be a winner in the consolidation of the European internet industry as we move our company from an incumbent-dependent ISP to an interconnected IP network operator."