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Picking on
Dot-com Bones
"Vulture capitalists" prey on dot-coms trapped in cash-burn
positions, APT Strategies has warned.
By Siobhan
Chapman
In the current
climate of severely depressed stock prices, internet-related companies
listed on the ASX are finding that there are limited opportunities to
raise further capital. More and more international companies are looking
to invest in struggling Australian dot-coms, according to APT Strategies'
latest report.
The Sydney-based online intelligence company has experienced a 100 per
cent increase in research that it conducts on behalf of international
internet and IT businesses interested in Australian companies.
According to APT Strategies' CEO, Marc Phillips, "Of the elements that
international companies prioritise when entering the Australian
marketplace, local partners are favoured when they have a combination of
access to a network of decision-makers and first-mover advantage."
An example of this is the recently announced $11 million investment
from Hong Kong financial and technology services company Techpacific.com
in Spike CyberWorks in return for a controlling stake in the services
business. Techpacific.com recognised that Spike Wireless holds first-mover
advantage with many blue-chip clients, despite the slipping share price
experienced by Spike Wireless in recent months.
"The VPs are flocking to Australia to review strategic assets. They see
great opportunity in the reactive financiers who have not switched from
being venture to vulture capitalists," said Phillips, who has acted for
Nasdaq and London Stock Exchange-listed companies in assisting their entry
strategies into the Asia-Pacific region.
Phillips outlined details of APT Strategies' most recent report,
Gaining Market Share in Asia Pacific, at the ROI for eBusiness
conference in Sydney this week. Further details can be found at APT Strategies.
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