Melbourne-based ISP, Netspace,claims it was not actively looking for an acquisition offer but has confirmed negotiations with iiNet.
“It makes good business sense for Netspace on behalf of its owners, to consider all relevant opportunities put forward to us,” Netspace managing director, Stuart Marburg, said in a statement. “However, despite media speculation brought to our attention, it is business as usual for Netspace at this time.
“Should that change, an announcement would be made in due course.”
Media speculation was rife that a $75 million buyout was on the cards. iiNet called a trading halt and issued a statement confirming it was in discussions with Netspace, along with several others.
However, iiNet claimed the suggested purchase price was a long way below the price range quoted in The Australian Financial Review, among others.
“These discussions are at an early stage and remain incomplete,” iiNet said in a statement. “The iiNet board has taken no decision regarding the potential acquisition.”
iiNet has previously stated its plans to purchase ISPs along the east coast to expand its presence.