Dixons, the electronics retail group, is considering the sale of
its 80% stake in Freeserve, the ISP, to T-Online, the biggest ISP
in Europe. T-Online is reported to be preparing a £6bn bid for the
company.
Dixons, which earlier this month appointed the investment bank,
Goldman Sachs to advise it on the disposal of part or all of its
stake in Freeserve, said “it would be wrong to suppose that there
was only one bidder.” It is thought that Telewest and NTL are also
interested.
Dixons makes money with Freeserve through its e-commerce
operations, on-line advertising and its share of telephone line
charges. In addition, Dixons products are sold on the web site.
The report that T-Online was preparing a bid sent the shares in
Freeserve soaring. Early trading today saw Freeserve’s shares rise
by 108 pence or 27.6%.
Freeserve, the UK’s largest ISP, has 2 million subscribers.
T-Online has 5 million, but it has yet to break into the English
speaking market.
