Share Name Share Symbol Market Type Share ISIN Share Description
Qxl Ricardo LSE:QXL London Ordinary Share GB00B1HHK885 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 1,476.00p 0.00p 0.00p - - - 0 05:00:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Retailers 36.4 9.8 17.2 85.8 0.00

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Date Time Title Posts
08/11/201602:41Why QXL will be the biggest multi-bagger of 2004...5 good reasons!20,326.00
30/10/201610:43if you aint got a penny..a ha'penny will do!18.00
30/10/201610:39anyone got another QXL like tip? need a 100 bagger23.00
16/12/201315:59Windmills and interesting gadgets.65.00
28/3/201112:19QXL what a ride that was2.00

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temmujin: this is where most of my money has gone into stellar resources...its not a one trick has oil and gold...and possibly there could be a double whammy or treble whammy factor in the share could be looking at the biggest ever stock riser in the history of the stockmarket...maybe 300 to 500 bagger Stellar Resources has made a new discovery at the Welsh mine that produced the gold for Kate Middleton's wedding ring. The Aim-listed company reported "encouraging" gold content in rocks at the Tyn n Cornel section of the Clogau St David mine. The mining company has been analysing samples from abandoned sections of the mine in an attempt to find untapped reserves of the yellow metal. The Clogau St David mine has produced the gold used to make Royal wedding rings since 1923 - most recently for Kate Middleton's marriage to Prince William. Stellar Resources owns a 49pc stake in Gold Mines of Wales Limited, which operates the mine on a lease from the Queen's through the Crown Estates. Donald Strang, the company's chairman, said: "These are encouraging gold grades from the Clogau mine and this work clearly demonstrates the potential of the area." The announcement on Thursday sent shares in Stellar Resources soaring by 76pc in early trading, before settling at 0.675p, up 29pc on the previous day's closing price. Related Articles Why the price of gold may jump 20 pc 28 Nov 2014 Nervous rich rush to buy 'Italian Job' gold bars 18 Sep 2014 Anxious Scottish investors buying gold 15 Sep 2014 The simple reason the gold price rises in September 11 Sep 2014 The seven drivers of the gold price 05 Aug 2014 Forget gold – invest in water 08 Sep 2014 Out of a total of 55 samples taken from the mine they returned average gold grades of 67.3 grams per tonne with six results returning greater than 300 grams per tonne of gold. David Lenigas, strategic mining consultant to the board of directors, said the average grade from gold mines globally was 1.8 grams per tonne. "There is absolutely potential in Wales but it is going to have to be worked on," said Mr Lenigas who retired from the role of chairman at Stellar Resources last month. Further studies on the potential at the Clogau St David mine and the costs of opening older areas of the mine are expected by the end of the month The Aim-listed company is also involved in the UK's oil and gas boom and announced the discovery of oil near Gatwick last month. The Horse Hill-1 well is located on the northern side of the Weald Basin near Gatwick Airport.
smoketoomuch: Blimey! QXL are one of the top 10 tips for 2007 in this week's Shares magazine (page 36)! We're in their 'high-risk portfolio', although imho since the recovery of allegro we're more of a cash-making machine than 'high risk'.... It's not reproduced online, but I need the typing practice so here goes: "Investing in QXL Ricardo, a European competitor to eBay, has been a roller-coaster ride but the real key to the future is the repatriation of its Polish subsidiary, of which the group regained control in August. Sales rose from £7.6m to £13.5m in H1 of this year. The Polish market is much less developed than elsewhere. Only 28% of the population are on the net, less than half the comparable figure in Western Europe, which in turn is less developed in the US. One-third of Polish internet users have either bought or sold on QXL. This proportion is likely to grow substantially as half of all Poles on the net have registered with the QXL site, which is much larger than eBay's Polish site. House broker Evolution Securities believes QXL Poland's revenue with grow at some 60% a year over the next three years. QXL has a leading position in Switzerland, Denmark and Norway. During the past three years these sites have seen compound annual revenue growth of 32.5%. European e-commerce revenue is forecast to grow at twice the US rate over the next three years. In each of these markets, the group is bigger than eBay. The very size of the group's sites means sellers know buyers will be plentiful, while buyers know QXL will offer a wide variety of goods. The level of liquidity is important and should ensure the sites' long-term growth. The group is seeking to offer classified advertising as an additional source of revenue. Evolution expects turnover to rise by 42% next year to £64.1m and 37% in 2008/09 to £87.6m. The broker is forecasting earnings per share of 439.8p rising to 533.5p next year and 676.1p in 2008/09. The forecast 1p maiden dividend is rather irrelevant in the context of the share price of £116 [clearly written last week - ed!]. But Evolution forecasts the shares could rise to £130 and believes its unique auction assets could be worth more than £200 a share to a trade buyer"
sikhthetech: Smoke, yep, its the priniciple of having a divi - gives a sense of 'income', which in turn reflects on the boards optimistic future..... Go, yes, it would be...companies declare a divi amount per share, from which a yield can be determined...say for arguments sake.they say £5 per share and the share price is £100 then this would equate to 5% the share price rises then the yield drops..and the reverse is true..if the share price drops then the yield rises, assuming the divi amount stays the same..if you look @ Lloyds then you will see they pay around 7% divi pa.....however if you have a lloyds savings account, you would be lucky to get around 2-3%....shareholders come 1st...but share price can vary so risk is involved, unlike a savings account....don't forget divis are taxable income... .......pension funds, income funds etc go for divi companies, Good Luck
albr: Gohunk - 3 Oct'06 - 15:05 - 18999 of 19001 ---------- LOL. Hilarious. A shame it won't do anything for the QXL share price :o)
maestro.: Online auction house pays £56m to regain Polish assets Dan Milmo Friday June 30, 2006 The Guardian The online auction house QXL Ricardo swallowed its pride yesterday and agreed to buy back its Polish subsidiary from the people it had accused of stealing the business. The former dotcom star will pay the parties it has been pursuing through the Polish courts about £56m in QXL stock, representing a quarter of the company. The recipients include a former employee, Arjan Bakker, who gained control of QXL Poland three and a half years ago in a disputed share issue that transferred the business to new owners. Article continues -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- QXL said it had also agreed to settle civil lawsuits with Mr Bakker and his associates and would use "reasonable endeavours" to halt a Polish criminal investigation into the affair. Mark Zaleski, chief executive of QXL, admitted a deal had been struck for pragmatic reasons. QXL's profits will more than double, from £11.1m to £27.7m, if the Polish assets are returned to the fold. "Obtaining undisputed ownership of QXL Poland will have a material impact not only on the enlarged group's financial metrics ... but also significantly enhances our position in the important eastern European region," said Mr Zaleski. Shares in QXL gained £22.89 to £122.49, valuing the business at about £221m. QXL stock has posted a vertiginous performance since early 2005, when shares in the business were worth 800p. At the start of this year, with the Polish dispute still going through the courts, QXL was trading on a valuation of 400 times prospective earnings, compared with a forward earnings multiple of 40 times experienced by its more successful rival, eBay. Shares in QXL had been boosted by a takeover battle for the business that erupted in 2004 and left nearly 60% of the equity in the hands of Florissant, a private equity firm backed by the Icelandic entrepreneur Bjorgulfur Bjorgulfsson, and the Izaki consortium of Israeli investors. However, the share price began to rocket further last year after traders inadvertently raised the price as they fought to buy back shares to close their loss-making trades. This so-called "bear squeeze" helped inflate the share price, and facilitated a deal with the owners of QXL Poland. However, QXL indicated yesterday that relations with the Polish team remained frosty. QXL said Mr Bakker and a number of his associates would stay on the management board of QXL Poland but its new employees would not be welcome on the full board. "The company has no intention for any of the managers to become directors of the company," said QXL.
maestro.: Good link Lukic...had to paste it QXL: still here and could be transformed by Poland Published: 13:50 Friday 26 May 2006 < PREV | 1 | 2 | 3 | 4 | 5 | NEXT > TOTAL PAGES: 5 By: Joanne Wallen, Online Editor Investors might be forgiven for wondering how on earth online auction business QXL's valuation has shot from just over £6 million exactly four years ago, to £204 million today?. That the company (QXL) was at one stage in 2000 worth several billion pounds is less of a surprise than the fact that today it is worth £204 million, and that even after profit takers top sliced their holdings yesterday after the company reported its first full year of profitability. The shares are currently down 59p at £118.76. In May 2002, QXL reported gross auction values of £102.3 million, gross profits of £4.9 million and trading losses of £25 million, rising to £39.9 million before tax for the year to March 2002. The company was also burning through cash at the rate of £4.3 million a quarter. Yesterday, QXL turned in its first ever full year profit, albeit of just £940,000 at the trading level and £2 million before tax against losses last time of £1.45 million. Its revenue increased 58% to £11.3 million and the gross merchandise value (total of goods sold through the sites) climbed 63% to £179 million. Diluted earnings per share were 99p. However a fair amount of hope is no doubt being pinned on the possibility that QXL will win its legal proceedings and regain control of its Polish business, which it claims was fraudulently taken from it by the general manager of the Polish business, Arhan Bakker, and his common law wife. In 2003 QXL launched civil and criminal proceedings against the pair, who, it alleged, had registered a 92% shareholding in QXL Poland to NIAA Sp, a company controlled by Bakker and his common law wife. The case says that the pair did this fraudulently, 'without the company's knowledge or consent, and as a result of Mr Bakker and his associates withholding documents from the Poznan Court Registry.' QXL chief executive Mark Zaleski told Citywire that the Polish business is about the same size as the rest of the current business, and would therefore represent at least 50% of the combined business if QXL were to win it back. For now, the company has focused on Switzerland, Norway and Denmark, where it believes it has a 'clear leadership position' in online auctions. Zaleski said that although US giant eBay has launched in Switzerland, QXL has 80% of the auction listings and has an established and loyal community there. In Norway and Denmark the only competition is from a few small, classified advertising-led players, but 'no one comes close to us.' The point about Poland is that it had just turned cashflow positive when the transfer of ownership occurred, and it would clearly be a very key addition to the group. The issues are however 'very complex' and involved a large number of people. Outside of its three core territories, QXL does do some co-branded auctions in the UK and France. Customers include Johnston Press, where the company has done a deal to provide online auctions across Johnston's local newspaper network under the 'Lot 24-7' brand. In France, it has hosted a charity auction in which celebrities such as Paul Belmondo and Mylene Farmer sold personal items, and another auction in which it sold all the shirts worn by the celebrity participants on a popular television games show. However, these deals are more to raise awareness of the QXL brand than part of a major strategic initiative, Zaleski said. QXL will for now focus on growing the core markets. It is also looking at expanding into other parts of Eastern Europe, including Ukraine, Russia, Hungary and Czech Republic. For now, the business focuses on C2C (consumer to consumer) auctions. However, Zaleski reckons that as the business grows, it is starting to be approached by retailers keen to use it as another channel to market (in the same way that eBay now sells a great deal of goods direct from retailers). Broker Evolution says the company could be transformed if it is successful in regaining control of Poland. 'According to our estimates, if QXL Poland were to be consolidated back into the group, then the company could make around £13.6 million of profit after tax for calendar 2007 (including £0.3m of synergies). This implies a calendar 2007 P/E multiple of 18.4x at the current price.' The broker has a £120 per share price target and an add recommendation. Citywire Verdict: Who'd have thought that QXL would even have survived, let along be worth more than £200 million today? It might have spent an awful lot of money getting here, but the company has been quite clever in building on the success of eBay while attacking markets that the US company has neglected.
biggie1: Copy/paste: "Had to copy this from iii...hope citysport doesn't mind but it all looks correct to me and these figures have not been plucked out of the air.... As previously explained with regard to QXL, I base my expectations on the CURRENT TRENDS model. That is to say that I am assuming that the trends of the last couple of years will be carried forward for at least the next year or so. Current Trend - we know from QXL Reports that for QXL ex-Poland: Revenue for year ending 31 Mar 2005 was £7.167M and increasing at around 65% for the year and since then the increase has remained in the 55% to 60% range. So I am working on the assumption that when the results come out for end March 2006, they will show that revenue will be between: £7.167M x 1.55 = £11.1M and £7.167M x 1.6 = £11.46M Incidentally, the only broker giving a figure has given a figure of £10.5M Operating costs for the year to Mar 2005 were £7.354M and were increasing at 46% for the year. So, operatting costs for this year (ending Mar 06) will probably be in the order of £7.354M x 1.45 = £10.74M. ON TOP OF WHICH I am allowing anything up to £1M for one-off situations such as legal costs. So, whilst this suggest a base profit of between £11.1M - £10.74M = £0.36M, and, £11.45M - £10.74M = £0.71M I am assuming that, after the special one-off costs, it is likely that there will be a small loss. So, basing a valuation on QXL ex Poland using the PE method is a non-starter. Instead I note that similar high tech firms are given a valuation of between 13 x revenue and 16 x revenue and this gives the best guide to QXL's worth. That is, I believe that QXL (ex-Poland) is currently worth between £11.1M x 13 = £144.3M, and £11.46 x 13 = £149M. And with 1.78 M shares in circulation that suggests a share price of between £81 and £83.7 In parallel, we have been told that: Poland's revenue was £8.8M at Mar 05 and that it had increased by 131% over the previous year. So, if I take a slightly conservative growth of 120% for 'Poland' and assume Operating Expenses grow at 50% for Poland, then assuming those current trends have continued, we would see that the revenue for 'Poland' for year ending Mar 06 would be £8.8M x 2.2 = £19.36M. We have also been told that Polish profits for 05 were £3.7M and therefore I assume that costs were £8.8M less £3.7M = £5.1M. The Current Trends model thus suggest a Polish revenue of £8.8M x 2.2 = £19.36M for 2006 and costs of in the order of 5.1 x 1.5 = £7.65M. So total revenue for QXL (including Poland) would be between £11.1M + £19.36M = £30.46M, and £11.46 + £19.36m = £30.82m And operating expenses would be in the order of £10.73M + £7.65M = £18.38M So, it can be seen that profits for QXL (inc Poland) for year ending Mar 06 could be £30.5M - £18.4M = £12 .1M. With a profit of this size I can use the PE model to estimate what a likely share price might be: Using a PE of 20 (favoured by Max) we get £12.1M x 20 =£242M and divided by 2M shares (see my earlier posts) = £121; And, using a PE of 40 (a realistic minimum in Smokes view) we get £12.1 x 40 divided by 2 = £242; And, using a PE of 60 which I use (bearing in mind the fast growing Polish figures) you get £12.1 x 60/2 = £363. So, when I add my figure for Poland to the figure for QXL ex-Poland I get a choice of: For a PE of 20 -------- £81 + £121 = £202 For a PE of 40 -------- £81 + £242 = £323 For a PE of 60 -------- £81 + £363 = £444 All for end Mar 2006. A few are currently selling at just over £100. I am holding, and if I had the money, I would be buying. These are my views based on my research. ADYOR"
maestro.: Good news for QXL marketing Message from DJNafey (116) 18/2 17:30 OK guys, I don't have a lot of detail on this but it looks like the marketing guys at QXL are "thinking out of the box" again. We've been hearing for a long time that marketing will be improved but now it's all starting to come through. QXL have now made another "partnership" deal to get sustained marketing in 220 newspapers all over the country. That marketing will promote smaller local auction web sites, which our listings will be included on. So now QXL auctions really are a 21st century replacement for classified ads in newspapers because you can even list items that are too big or heavy to post, as well as what we're already buying and selling. Got a knackered car that you'd take £50 if only someone local would come and get it? Put it on QXL! Haven't got a van to get rid of that old double bed? Put it on QXL and with this promotion, local people will see it and be close enough to come and get it! Re : Good news for QXL marketi Message from bitslimited (256) 18/2 18:22 It seems everything comes to those who wait. About 2 years ago, I suggested a strategic alliance with local newspapers and radio stations to replicate the SmartBid (any of the greybeards remember that?) auctions then being promoted jointly with the London Evening Standard. I recall Andrea (anyone remember her?) being interviewed on several radio stations, including some in the Irish Republic. SmartBid died a death, probably because nobody at QXL had the vision to take it nationwide. Local papers and radio stations are always looking for promotions to fill up space and airtime, all it needs is for someone to spend time on the phone selling the concept. Let's hope QXL perseveres with this one, otherwise the Last Chance Saloon can't be far away. Re : Good news for QXL marketi Message from billyfury (1274) 18/2 18:38 Hell DJ HOW ARE THEY GONNA GET THE FUNDS ? iNCREASE ALL THE THE FINAL FEES TO 15% as in the Adult section which is the only thing which is keeping it afloat. We will see! Nothing was done the last time when fees wnt to 9% and I much doubt if much will be done this time ,. Bits The Chance Saloon is about right. If ebay can advertise on TV so can Qxl.I remember Andrea and she done a lot more than credit is given Re : Good news for QXL marketi Message from DJNafey (116) 18/2 19:31 Is it possible to have a conversation these days without someone saying "15%", lol ?! ;) I understand your sinicism BillyFury but I do believe that QXL have finally woken up this year - what we need is SUSTAINED marketing, not just for a week. I've already seen different types of QXL mailers coming into my Inbox recently to try different angles at getting buyers back onto the site. Unfortunately, TV advertising is expensive. I think the QXL ethos is still driving more towards better ideas rather than bigger cash outlays. The promotion in 220 regional newspapers has already been confirmed in public but it's a big operation to set up so it may be a few weeks before it actually gets up and running. Extract from the Independant: ------ Considering eBay's success, it's surprising that few competitors have mounted a serious challenge. Its principal rival, QXL Ricardo, was an early star, but sank when its performance failed to match City expectations. However, it has now returned to prominence. Mark Zaleski, QXL's chief executive officer, says the company is focused on serving the needs of individuals, rather than businesses. "We're looking for communities rather than companies because the latter drown out the little guys," he says. To achieve this, the company is setting up joint ventures with established players in different marketplaces. Earlier this year, for example, it announced a co-branded tie-up with Johnston Press, the UK newspaper group. "We know we're not going to outspend eBay in marketing, but this is a way for other companies to marry our expertise and their member base," adds Zaleski. ------ Re : Good news for QXL marketi Message from billyfury (1274) 18/2 19:46 DJ I will beleave when it happens..I aint gonna hold me breath. As for TV advertising they take enough. Still if someone is mug enough to give me 15% I will take it .LOL They have got hell of way to go to get a lame duck up and running as long as they have cut of their legs. Best laugh I have had and will beleave it when it happens if ever. Re : Good news for QXL marketi Message from bitslimited (256) 18/2 20:05 Because it's been announced, it would be fatal for QXL's share price if it didn't happen, so I'm giving them the benefit of the doubt. If the concept is right, it'll propel QXL's value into the stratosphere. If it doesn't, look out for your invitation to the wake. I like to keep my criticism constructive but, having spent a lifetime in real business, there's times I despair of dot.coms. Re : Good news for QXL marketi Message from billyfury (1274) 18/2 22:49 Bits & DJ It still does not warrant a 15% final fee in the adult section only..The final fee should be the same for all. Re : Good news for QXL marketi Message from fender1 (18) 19/2 04:46 dam right. Trouble is nothing sells outside of the over 18 section, so they would get 15% of nothing, which is why we over 18 sellers get stung all the time. Anyone noticed the drop in sellers in the 18 section since the price hike. Re : Good news for QXL marketi Message from fredanto (2467) 19/2 06:25 Not quiet true Fender of the 15%-I enjoy regular weekly sales and have so for a considerable time.So,what's with all the gloom all the time?Why does things of improvment getting knocked without given a chance?and for the doom vision-that's been hanging arround for years and QXL is still in business!Yeah Andreas,people come and people go and Stuart is,perhaps more quietly,always on the ball,so cheers to him!Lately I had business with a lot of new members and this surely most be a good sign?!So why not try to be a bit more positve,after all,Rome wasn't build in a week and good things will take their time!If you think my Englisch has improved over the years beep your horn!Auf Wiedersehn,bis bald. Re : Good news for QXL marketi Message from billyfury (1274) 19/2 08:47 fredanto I am pleased to hear your sales are doing well.I agree Stuart does a job. Like it or lump it. It still does not warrant 15% in the adult section only.We were thinking positive after the last fee increase and nothing happened..Your English has much improved over the years Re : Good news for QXL marketi Message from bitslimited (256) 19/2 09:08 billy I agree entirely about the O-18 success fee. A while back I was one of the first to criticise it, though I don't sell in that category. I believe in a flat fee structure, a level playing field for all sellers. It's easy to get cynical and I've been awaiting all the promised jam ever since QXL reintroduced listing fees. After years of dry toast, let's just see if it delivers this time. I think it's far to say that QXL's credibility will be ruined if it doesn't.! Re : Good news for QXL marketi Message from billyfury (1274) 19/2 11:02 Bits I agree it should be a level playing field for all.If certain other sites can do it and still increase their membership and profits so can Qxl ! Re : Good news for QXL marketi Message from DJNafey (116) 19/2 19:17 'Beep beep' to Fredanto ! :)
albo: More BS !! A Share That's Gained 6,000% Market Comment By David Kuo QXL Ricardo (LSE: QXL.L - news) (LSE: QXL) may be the poor man's eBay (Nasdaq (NASDAQ: news) : EBAY (NASDAQ: EBAY - news) ), but it certainly knocks spots off the US online auctioneer in terms of valuation. With pre-tax profits of £0.7m pencilled in for 2006, QXL's market capitalisation of £119m values it at an eye-popping 248 times net earnings. By comparison eBay, with net income of $780m, is valued at a 'mere' 50 times earnings. Founded in 1997 as Quixell, the company has been unprofitable until fairly recently. At the turn of the Millennium it racked up a loss of £50m. But since then, the annual deficit has come down in leaps and bounds as it embraced more profitable avenues of growth. When it first started, founder Timothy Jackson intended QXL to be an Internet auction site for selling computer gear and consumer electronics. It was essentially a business-to-consumer auction site. But the company soon started auctioning jewellery and travel. It also grew overseas and established sites in France and Germany. Growth also led it to offer consumer-to-consumer auctions, which motivated it to change its name to QXL. A subsequent acquisition of German rival prompted another name change to QXL Ricardo. While QXL's operational transformation has been impressive it pales into insignificance when compared to its share price performance. Shares in QXL, which were languishing at just over 100p in 2003, are now worth 6,950p or a gain of 6,000%. But the rise has little to do with QXL's underlying business. Instead it appears to be an unfortunate quirk of the stock market, which the company referred to recently as "technical market issues". It seems that a bidding war between two suitors, Tiger Acquisitions and Iceland's Beleggingsmaatschappij Florissant, which started last year, pushed the shares well above their true worth. Elsewhere, an Israeli group Izaki, reportedly masterminded by economics professor Yair Tauman, was also buying the shares even though it was not involved in the bid battle, which has now fizzled out. Meanwhile, traders who were sceptical of QXL's bid-fuelled valuation were selling shares that they did not own in the hope of that they could buy them cheaper at a later date. However, the shorters were caught on the hop when they found it difficult to buy shares on the market. That's because Florissant and Izaki together held over 55% of the outstanding shares. Bizarrely, then, it is the shorters' cynical view of QXL's absurdly high valuation that has made the shares even more expensive. For now it appears that QXL shareholders are enjoying extraordinary paper gains as the shorters try to untangle their positions. Ironically, though, major shareholders who are responsible for this predicament cannot easily realise their gains. That's because the only likely buyers of the shares are the shorters! Curiously, Yair Tauman, whose forte includes Game Theory, may not have considered a Mexican standoff as a possible endgame. In fact it is unclear just how high the standoff between shareholders and shorters will stoke QXL's valuation. What is in no doubt is that QXL is massively overvalued, and fans of spaghetti Westerns will be acutely aware of how most Mexican standoffs end!
maestro.: OFFERS BY TIGER ACQUISITION CORPORATION PLC ("TIGER) AND BELEGGINGSMAATSCHAPPIJ FLORISSANT N.V. ("FLORISSANT") FOR QXL RICARDO PLC ("QXL") Introduction This is a statement of criticism of Teather & Greenwood Limited ("Teather & Greenwood") which committed a number of breaches of the Code while acting as broker to Florissant in the context of the recommended cash offer by Florissant for QXL. Background In late 2004 and early 2005, QXL was the subject of competing offers by Tiger and Florissant. On 26 November 2004, Tiger announced a recommended cash offer for QXL of 700p per share. Following the receipt of a number of proposals from parties interested in acquiring all or part of the business of QXL, the independent directors subsequently withdrew their recommendation of this offer and, on 14 January 2005, Florissant announced a unilateral cash offer of 800p per share. On 14 February, Tiger announced an increased recommended offer of 1000p per share in cash plus one litigation entitlement unit. Florissant responded on 3 March by announcing an increased recommended cash offer of 1400p per share. On 4 March, the Executive announced rules relating to a controlled auction procedure to resolve the competitive situation. Following the announcement by Tiger of minor revisions to the litigation entitlement units on the first two days of the auction, Florissant announced, on 10 March, the final day of the auction, that it would not be revising its offer of 1400p per QXL share. This was on account of the fact that Great Hill Equity Partners II LLC ("Great Hill "), the principal funder of Tiger, had taken an option to acquire a minority equity interest in Florissant, conditional on Florissant's offer becoming or being declared unconditional in all respects. Accordingly, Great Hill announced that it intended to lapse Tiger's offer at its next closing date. Florissant was initially advised only by Hawkpoint Partners Limited ("Hawkpoint ") and ISB Corporate Finance (ISB"). However, on 4 February, Teather & Greenwood was approached to act as broker to Florissant and a draft engagement letter was sent to Florissant on 9 February. Although this letter was not signed by Florissant until 18 February, Teather & Greenwood was named as broker to Florissant in an announcement released by Florissant on 11 February under Rule 17.1 of the Code detailing its level of acceptances as at its first closing date. However, it was not until 18 March that the Executive was contacted by Teather & Greenwood and notified that it was acting for Florissant. On 11 March, the day following the conclusion of the auction procedure, Teather & Greenwood was instructed by Florissant to buy up to 306,000 QXL shares at 1400p per share (being the price of the Florissant offer). Teather & Greenwood satisfied this order through its market-maker acquiring stock from the order book, from market counterparties and from clients of Teather & Greenwood. On 14 March, Teather & Greenwood received an order to buy a further 154,000 QXL shares for Florissant. However, on this occasion, Teather & Greenwood was unable to fulfil the order from the sources referred to above and so its market-maker went short the balance (leaving the market-maker with a short position of 20,183 QXL shares). On 16 March, Florissant submitted an order to buy a further 48,000 shares. Again, Teather & Greenwood was unable to fulfil the order and again its market-maker went short the balance. This resulted in the market-maker's short position increasing to 35,582 QXL shares. Each of these purchases of QXL shares by Florissant was disclosed by Teather & Greenwood on behalf of Florissant under Rule 8.1(a). The short position of 35,582 shares in favour of Florissant at 1400p per QXL share was "naked" as Teather & Greenwood had not borrowed stock to deliver to Florissant. However, Teather & Greenwood was not unduly concerned at this since it believed that, following the conclusion of the auction, the Florissant offer was likely to succeed. Accordingly, Teather & Greenwood believed that it would be able to fill this short position by purchasing QXL shares in the market at or below 1400p per share. However, on 21 March, prior to Teather & Greenwood having filled its short position, the QXL share price rose to above this level (where it has remained ever since) on account of, inter alia, the Izaki Group purchasing shares in the market at above Florissant's offer price. As a result, Teather & Greenwood was exposed to the risk of having to fill its short position at above 1400p per QXL share. This would not only result in a cost to Teather & Greenwood, but would also mean that certain shareholders in QXL would be taken out of the market at above the offer price indirectly by Florissant. In the light of this concern, and in view of the fact that, under Note 5 on Rule 10, Florissant would not be able to count the shares which it had been sold short and for which it should have not yet received valid title towards its acceptance condition, on 23 March, the Executive agreed that Florissant should publish an amended disclosure under Rule 8.1(a). This disclosed that Florissant had been unable to obtain satisfactory title to 17,948 of the QXL shares purchased (being Teather & Greenwood's outstanding short position of 11,948 shares and the 6,000 shares which Teather & Greenwood had acquired above 1400p per share - see further below) and that Florissant's resultant total holding was in fact 490,052 shares, being 28.83% of QXL's issued share capital, and not 508,000 shares as previously disclosed. This effectively unwound the acquisition by Florissant of the shares which it had been sold short to the extent that Teather & Greenwood had not subsequently been able to fill the short position at or below 1400p per share. As a result, the Executive was, in all the circumstances, satisfied that none of the shares acquired by Florissant could be said to have been acquired at above its offer price. On 7 April, the final date by which, under the auction procedure, Florissant's offer could become or be declared unconditional as to acceptances, Florissant announced that it had received acceptances in respect of 10.2% of the issued share capital of QXL and that, accordingly, its offer had lapsed. Issues arising under the Code
Qxl Ricardo share price data is direct from the London Stock Exchange
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