QXL leaps in value after bid approach

ONLINE auctioneer and former dotcom darling QXL ricardo almost doubled in value today as it revealed it was in takeover talks.

Shares in the UK equivalent of eBay surged 272½p to 600p, valuing the firm at £8.6m, but that is still a long way from January 2000 when its market value hit £2bn.

City speculation was that eBay was the likely buyer but QXL, headed by chief executive Mark Zaleski, would only confirm that it was 'in early discussions which could lead to an offer being made for the company'.

Loss-making QXL employs only 60 people across Europe including its head office in London and operations in Norway, Switzerland and Denmark. It had a workforce of 500 four years ago.

News of the takeover talks comes less than a week before QXL kicks off a multi-million dollar lawsuit in the Polish courts to recover its Polish business, allegedly stolen in an unauthorised share deal by the country's former head Arjan Bakker two years ago.

QXL is thought to be moving towards profitability this year. Pre-tax losses for the year to the end of March narrowed to £6.5m from £18.7m and it has about £1m of cash.