Eisa keeps market in suspense

Shares in internet service provider Eisa will remain suspended until the company makes an announcement on its future next week, a spokesperson for the ISP said yesterday.

Trading in the company was suspended before trade on Tuesday, pending the announcement of one or more deals which are expected to provide the company with the $350 million it needs to buy fellow ISP OzEmail.

On Monday, the share price closed at $2.60; however, bids for the company since the halt in trading rose to $4.01 this morning.

According to reports, Eisa has already signed two memoranda of understanding, with a global infrastructure company and a local investor.

Reports have also claimed the ISP is lining up an equity deal with Vodaphone. However, a spokesperson from the mobile phone dealer denied the claims yesterday. Earlier this year, the two companies established a marketing and technical alliance, which is aimed at offering customers access to internet services through mobile phones.

Eisa has already said it wants to pay for OzEmail by setting up strategic alliances, but the company also said a placement of up to $200 million worth of shares to offshore institutions and corporations has not been ruled out.

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