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  • BY: Andrew Hore |
  • POSTED: 05/06/2008 |

AxisMobile says it is not going ahead with the proposed sale of its business.

The plan was to swap the consumer mobile email business for shares in the buyer, which is a private US-based software company.

AxisMobile has ended talks with that buyer because the news of the disposal of the business sparked interest from other potential buyers. These talks are continuing.

The shares were unchanged at 6p, which values the company at £1.77m. That is understandable because there is also £6.9m of convertible debt. The company hopes to agree the conversion of this debt into shares, which is likely to be highly dilutive to existing shareholders. So, even if there is a more attractive bid for the business, it is difficult to assess whether the current ordinary shareholders will be entitled to the equivalent of the present market capitalisation of the company. 

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