US rival to snap up Virtual for £12m

EMBATTLED dotcom Virtual Internet is selling out to its US rival Register.com in a cash deal that values the group once worth £250m at a mere £12m.

Virtual Internet's 31-year-old founder and majority shareholder Jason Drummond, rated Britain's wealthiest internet entrepreneur when his stake was worth £130m, is recommending a deal that will gross him just over £6m.

Drummond also made £6m in Virtual's move to the main market at 900p per share in March 2000, three months before a profits warning sent shares in the web-name registering business into decline.

Bank of New York and Royal London are Virtual's largest institutional shareholders. The shares today rose 10 1/2p to 45p.

Drummond will work part-time for the newly Nasdaq-listed Register, which intends to de-list the firm from the market. The offer lapses on 22 February.

Virtual today reported that pre-tax losses in the year to 31 October rose 245% to £19.6m on sales up 48% to £9.3m. It has £8.6m in cash, worth 33.8p per share.