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Message subject : Eisa: two OzEmail partners

This message was posted by Webman on April 05, 2000 :
An article from a paper

Eisa: two OzEmail partners

By KATE CRAWFORD

Eisa (EIS)has signed deals with two partners in the past 24 hours to help fund its $350 million acquisition of OzEmail: a global infrastructure company and a local institutional investor.

The partners, whose identities remain unknown, will take an equity share in exchange for financing the OzEmail purchase.

Eisa, which issued a trading halt yesterday, is expected to announce the names of its two partners as early as next week.

Eisa chief executive Mr Damien Brady has been in discussions with several companies in the past month, with more partnerships in both content and technology expected.

Eisa needs to secure powerful alliances to cement the acquisition of OzEmail and give it a firm competitive footing against Telstra Big Pond - its rival for the title of Australia's number one ISP.

Telstra's Big Pond now has about 450,000 customers, but after the OzEmail buyout Eisa will steal the lead with approximately 460,000.

Eisa was rumoured to be close to signing a deal with ANZ that would see the bank take a stake in the ISP, but a source close to Eisa said the ANZ was not one of the partners.

Vodafone, which has an existing alliance with Eisa, is also expected to be ruled out as an equity partner - although the alliance is expected to deepen.

Mr Brady was circumspect yesterday, but confirmed Eisa was in continuing discussions with Vodafone with a view to "cementing a more extensive relationship". They formed a
marketing and technology alliance in February which aimed at giving Vodafone and Eisa-OzEmail subscribers access to Internet services through mobile phones and portable
devices by the end of the year.

Vodafone indicated that it was not aiming to develop that alliance into an equity partnership with Eisa.

"We would rather have a strategic partnership and, although equity has been mentioned in discussions and we can't rule it out, it is not our preference," a Vodafone spokeswoman
said.

Vodafone yesterday announced its global platform for mobile Internet services, the most recent in a series of announcements and partnerships that are seen as a build-up to an expected $4 billion float mid-year.

Market rumours are circulating that a content agreement with Disney is being negotiated by Eisa, although no content partner announcements are expected soon.

Eisa shares had dropped 10.7 per cent to $2.60 before trading was halted yesterday.
Since February 12, when news of Eisa's deal with UUNet to buy OzEmail was revealed, its share price has more than doubled.



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