No due diligence on Advantage

By Phil Boeyen, ShareChat Business News Editor

Friday 6th April 2001

Speculation over a possible sale of tech group Advantage (NZSE: ADV) has been tempered by the company, which has denied that any one is undertaking due diligence.

Media reports have claimed the company has been pushed for sale to overseas investors and more recently to local interests.

However in a statement to the stock exchange Advantage that it is aware of recent comment and speculation but that no one has or is undertaking due diligence.

"The company continues to explore the possibility of strategic relationships and partnership opportunities and from time to time has provided publicly available information to potential local and international partners," the company says in a statement.

Advantage was responding to an NZSE query into its share price, which had dropped more than a third in two weeks.

In its reply Advantage pointed to its announcement on April 3rd of the recent resignation of its eServices CEO, Mike Stobbs.

Mr Stobbs left the company in late March, and Advantage says his departure is part of the ongoing drive to reduce costs and achieve greater efficiencies in the eServices division.

In the six months ended December the eServices division recorded an operating loss of $1.6 million and although the company was predicting a soft third quarter it forecast a recovery in the last part of the financial year.

ADV shares hit a two-year low of 67 cents yesterday but have recovered in morning trading to around 74 cents.

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