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Unwired Trading Halt |
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Written by Adam Gosling
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Wednesday, 26 September 2007 |
Takeover target and wireless broadband provider, Unwired, have
requested a trading halt prior to a market announcement according to an
ASX statement. See Update on Seven bid for Unwired here .
The statement released by the Australian Stock Exchange reads: "The
securities of Unwired Group Limited (the "Company") will be placed in
pre-open at
the request of the Company, pending the release of an announcement by
the Company. Unless ASX decides otherwise, the securities will remain
in pre-open until the earlier of the commencement of normal trading on
Friday, 28 September 2007 or when the announcement is released to the
market."
Last week we reported that The Seven Network, through the VoIP service
provider reached the threshold 19.9 per cent of the Unwired stock after
increasing its holding in the wireless carrier from 11.37
per cent.
At that time Engin said in a statement to the ASX that "the stake has been acquired for investment purposes
and should enable Engin, as a significant shareholder, to play a
prominent role in the development of wireless broadband technologies
across Australia".
However, the company has also flagged the possibility of a merger or in
the very least showed enthusiasm for a substantial cooperative
endeavour between the two organisations.
The
pure-play residential VoIP provider is in the process of
diversification in an effort to position itself as a future triple play
provider. Engin has already done a deal with Optus Communications
to offer retail DSL including naked DSL services and has plans to
import the hugely popular TiVo personal video recorder system from the
United States.
Lately it has shown more than a passing interest
in wireless broadband player Unwired which plans to migrate its
Australian network footprint to the mobile WiMAX standard in the new
year.
Engin paid just 40 cents per share for the first 11.37 per
cent of Unwired, but was forced to increase what it is willing to pay
now that it has shown its hand. Shares in Unwired have risen from 25
cents since late August.
Go here for more background on the original Engin share purchase.
www.engin.com.au
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