QXL confirms takeover interest

Online auctioneer QXL Ricardo saw its share price surge more than 80% today after it confirmed it was in takeover talks.

The London-based firm, which conducts Internet auctions in 10 countries, said it was in the early stage of discussions but did not reveal who the possible bidder was.

The update sent shares soaring to 600p and gave the company a market value of £8.6m (€12.3m), although this was still far lower than its peak of around £2bn (€2.9bn) in early 2000.

QXL’s online auction trades 24 hours a day, seven days a week, and allows buyers to bid on goods and services ranging from computer software to collectables and sports equipment.

In its most recent market update, the group said it reduced half-yearly losses to £383,000 (€548,600) from £6m (€8.6m) previously, while turnover was 62% higher at £2.98m (€4.3m).

The firm has switched its focus from rapid expansion to cost saving over the past two years, working to improve its sites and pulling out of under-performing parts of its business.