Eisa, OzEmail deal in doubt

The long-term effects of last month's tech stock crash are set to continue, with serious doubts now cast over Internet service provider Eisa's proposed $350 million acquisition of OzEmail.

The doubts arose earlier this month as spectators watched the deadline for the company - in which it had to prove it could supply half the funds to buy OzEmail - pass quietly, despite a surprise remedial offering of $60 million to Eisa from prospective shareholder Hastings.

Before the April meltdown, Eisa announced that it planned to provide funding for the OzEmail acquisition through partnerships with Fairfax's online division, F2, and ANZ, each of which agreed to take a 5 per cent stake in Eisa through subscribing to buy 20 million shares at $2 apiece.

All parties are believed to have started renegotiations.

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