Friday January 11, 02:32 PM
Oakley Capital frontrunner to buy Pipex businesses - source
LONDON (Thomson Financial) - Oakley Capital Private Equity LP is the frontrunner to buy the web-hosting and network services businesses of the UK's Pipex (LSE: PXC.L - news)
, according to a person familiar with the auction process.
A deal could be agreed by the end of this month, the person said.
'The attraction of Pipex's web hosting business is its stable subscription which gives it a good cashflow,' the source said.
Some analysts reckon the Pipex businesses could fetch more than 100 mln stg.
Oakley, the AIM-listed investment company, is run by Peter Dubens, who is also chairman of Pipex.
Oakley, which has already declared an interest in bidding for the Pipex businesses, declined to comment, as did Pipex.
Other bidders are reported to include Germany's United Internet (Xetra: 508903 - news) and UK telecommunications company Thus Group (LSE: THUS.L - news) .
The source added that other private equity firms have made offers for the Pipex businesses.
The sale of Pipex's web-hosting and network services divisions would leave the company with its wireless technology business, which has a joint venture with Intel (NASDAQ: INTC - news) to exploit licensed spectrum operating the WiMAX standard.
Last July, Pipex sold its consumer broadband and voice division to Tiscali (TIS.MDD - news) for 210 mln stg.
Two months later Pipex announced a strategic review, including a possible sale of the web hosting and network services businesses and a demerger of its wireless business.
At 1.52 pm Pipex shares were down 1-1/4 pence at 8-3/4 pence, valuing the company at 207 mln stg.
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