The statement by QXL.com of yesterday reads:
“QXL.com plc has received certain information from ricardo.de AG in the period following the announcement of the proposed transaction on May 16, 2000. The Board of Directors of QXL.com is evaluating the implications of this information on the proposed transaction. A further announcement will be made in due course.”
QXL.com today told OUT-LAW.COM that it would not add anything to this statement and that it could be a few days or as much as two weeks before any further information is released. There have been rumours that Ricardo is short of cash, but these have been denied by the German company. It recently said it expects to break even next June and that it has enough cash to stay afloat until then.
The proposed merger would have created a major internet auction force in Europe, allowing QXL.com to leapfrog the value of US auction giant eBay. In May, Ricardo’s CEO described the proposed merger as “a historical moment for e-commerce in Europe.”
Following yesterday’s announcement, shares in Ricardo.de fell 20% and shares in QXL.com jumped by 15%. This means that Ricardo is now well below its valuation in terms of the original offer by QXL.com, which had valued the German company at £668 million. It’s current market capitalisation is down to £219 million.