QXL Ricardo 'unable to back takeover bid'

The sale of online auctioneer QXL Ricardo looked uncertain tonight after it said a recent approach undervalued the company.

The auctioneer – once tipped as Europe’s answer to eBay – said it could not recommend a 800p-a-share proposal from Florissant, a consortium involving two London-based businessmen.

Its independent directors also withdrew their support for an earlier 700p-a-share offer from Tiger Acquisitions Corporation, which involves its managers.

London-based QXL said that in the absence of a higher offer, the best way forward may be to consider disposals.

It said it had received an initial approach about the sale of a part of the company, but this had been rejected due to negotiations with Tiger Acquisitions. However, the interested party remained keen to pursue its proposals in the future.

Shares in QXL have soared to 850p in recent weeks, valuing the company at around £14.5m (€20.7m).

The group, which operates in 10 European countries, was founded by former Financial Times journalist Tim Jackson in 1997 and became a favourite with investors during the dotcom boom.

It was worth £1.5bn (€2.1bn) four years ago before the technology bubble burst.

Members of its websites buy and sell goods such as sports gear, electronics and collectibles.

It also said today that it continued to be encouraged by current trading and its prospects.