NewMedia Spark in bid talks

NewMedia Spark, which owns stakes in technology firms and which was one of the technology darlings of the internet boom, confirmed yesterday it was in bid talks.

But the investment company, which is headquartered in London, warned that an offer, if made, was likely to be at less than the company's previously-stated net asset value of 13p a share. Shares in the business closed down 0.25p at 9.25p. During the internet frenzy of early 2000, the stock had traded as high as 185p a share.

NewMedia Spark said yesterday it was considering a range of "strategic options" relating to its future and that one of the options on the table was the sale of the business.

Discussions had been held, it said, but "these discussions are still at an early stage and may or may not lead to an offer being made for the company".

Furthermore, any offer was expected to be below its last stated net asset value. At the end of March, NewMedia Spark had net assets of £61.6m, or 13p a share.

"The board will continue carefully to consider all options," NewMedia said.

The company, which was founded in 1999 by a group of investors including the entrepreneur Luke Johnson, who has since cut his ties, lost £105m in the year to 31 March. It wrote down the value of its investments at that time to £38.8m from £109.7m a year earlier.