eisa fails in bid to snare OzEmail

eisa fails in bid to snare OzEmail

Trading of shares in the once promising ISP and hardware provider eisa were again suspended last week with investors continuing to jump ship as one after another of the partners it had pooled to buy leading ISP OzEmail pulled the pin.

The suspension was the latest development in what proved to be a disastrous week for a company which, only months ago, appeared to have taken on the might of Telstra and won in its goal to become the biggest ISP in Australia.

The final stake was driven through the heart of eisa's troubled bid to acquire OzEmail Internet when owner UUNet announced its decision to withdraw from the deal.

"Under the agreement, eisa was required to have financing commitments in place last month. It is clear that eisa is not in a position to meet that requirement," UUNet said in a statement.eisa's intended acquisition, worth an estimated $350 million, came to grief earlier last week when Fairfax online division f2 announced it had ended its memorandum of understanding with the company.

According to the deal, f2 was to pay $40 million to acquire a 5 per cent equity stake in eisa at $2 per share.

Further strife hit eisa when market spectators watched shares plummet to an all-time low of 23 cents last Thursday, following the announcement that eisa chairman John Pascoe and director Michael Ball had both resigned for medical reasons.

UUNet said in its statement that it would consider other offers to sell off OzEmail "if the right opportunity was presented". UUNet refused to comment and eisa did not return ARN's calls.

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