Forum Archive Index - July 2000

["Ben Dutton" <bendutton@sharechat.co.nz>]

Seems like rumours of Sausage Software taking over LibertyOne were behind
yesterday's rise in LIB...

(No holdings in either)

Benjamin Dutton


>From SMH:


http://www.smh.com.au/news/0007/06/bizcom/bizcom03.html


Sausage gossip ignites Liberty
By COSIMA MARRINER

Shares in Internet group LibertyOne ran hot yesterday, surging 38 per cent
as retail investors piled into the stock on market talk that Sausage
Software was considering a takeover.

Following comments by Sausage chief Mr Wayne Bos on Tuesday that the company
intended to make 10 acquisitions this year, shares in LibertyOne rose 10c to
36c amid speculation it was a possible target.

"People are touting Sausage as a potential buyer of LibertyOne," said
Hartley Poynton analyst Mr Ian Hunter. Sausage rose 23c to $2.82 on trade of
2.3 million shares.

However, brokers said LibertyOne's gain was more likely evidence of the
return of day traders to the market. Trading in the stock was dominated by
the online brokers, with ComSec the most active, buying 4 million shares and
selling 3.7 million.

"I would be hesitant to put weight behind the speculation," said Mr Hunter.
"Wayne Bos is a very open and candid person and LibertyOne has always been a
very speculative stock."

LibertyOne and Sausage played down the market talk. "As far as I'm aware
we're not in discussions with Liberty One," said a Sausage spokeswoman. "I
don't know where the hell that's come from."

A LibertyOne spokesman said he was unaware of what was fuelling the investor
interest.

Junior telco Davnet was the other big story of the day as more than 40.25
million shares changed hands after reports that Japanese telco NTT intends
to expand its stake beyond its existing 49 per cent holding in operating
subsidiary Davnet Telecommunications.


Burdett Buckeridge Young and BNP Paribas Equities were the two biggest
buyers, taking 3.43 million shares at $1.97 and 2.9 million at $1.95
respectively.

Davnet jumped 37c, or 21 per cent, to a high of $2.12 before it released a
statement conceding it was in talks with NTT about expanding their
commercial and operational relationship, but that no investment was
imminent.

Market sources said two major investment banks subsequently started shorting
the stock, aiding its retreat to $1.84.

Rumours continue to circulate that Davnet will announce deals with a US
property group and US telco carrier in two weeks.




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