Surprise QXL bid could scupper MBO

Last month, QXL announced that Tiger Acquisition, a firm formed by its managers, had agreed to pay around 700p per share to take the struggling firm private.

However, a Dutch shell company representing a group of outside investors has put forward a proposal that could result in an 800p-per-share bid.

QXL said it has also received several other proposals, which are being considered.

The firm had already recommended that shareholders accept the offer from Tiger, but now says undecided shareholders should wait for clarification of the Dutch approach.

"QXL":http://www.qxl.co.uk was set up as Europe’s answer to eBay, but it has struggled to compete with the US Auction giant. It operates in 10 European countries, and was founded by Tim Jackson, a former Financial Times journalist in 1997.

The website enables users to buy and sell goods on an auction bid basis.

In its most recent market update, QXL said it reduced half-yearly losses to £383,000 from £6m previously, while turnover was 62% higher at £2.98m.

At the time of its flotation in 1999, the auctioneer was valued at £1.5bn.

**Related:**

"Auction site goes under the hammer":http://www.netimperative.com/2004/11/26/Auction_under_hammer/