Dixons invests pounds 9m in online trader
Friday 14 May 1999
A spokeswoman for Freeserve said the purpose of the $15m (pounds 9.4m) investment was to acquire GlobalNet's expertise in online share trading, already a booming business in the US where many amateur traders manage their own pensions over the Internet. Freeserve exercised options to purchase two million GlobalNet shares, trading yesterday at $4, for $1 and bought a further 6.4m in the market at around $2, to give it a 13 per cent stake.
GlobalNet is already a partner in Freeserve's online financial information site, UK-iNvest.com, which allows browsers to plot share price movements and construct virtual investment portfolios. Freeserve has the option to increase its stake in the $210m company to 19.9 per cent over the next 30 months. Analysts said Freeserve was unlikely to mount a bid for the group.
Dixons' shares have come off their April high of 1,594p following the establishment of rival free Internet service providers and America Online Inc's decision to cut subscription charges. Yesterday they gained 68p to close at 1,266p. Some analysts calculate that Freeserve accounts for 700p of the share price.
Nick Bubb, retail analyst a SG Securities, said: "We have been excited about Freeserve's online trading for some time and this deal puts it in focus. It will give Freeserve another content advantage which will strengthen consumer loyalty.
- 1 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 2 West poised to join forces with President Assad in face of Islamic State
- 3 Mother fed her daughter tapeworms to make her skinny for pageant
- 4 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 5 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
West poised to join forces with President Assad in face of Islamic State
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
Bin bag full of cats' heads discovered near Manchester's Curry Mile
iJobs Money & Business
£30000 - £45000 per annum: Harrington Starr: A global investment management fi...
£65000 - £75000 per annum: Harrington Starr: Senior Network Engineer-(CCIE, CC...
£70000 - £80000 per annum: Harrington Starr: Senior Network Analyst - (CCIE, C...
£60000 - £80000 per annum: Harrington Starr: Senior Network Engineer-(Design, ...