LibertyOne stops trading

Internet media company LibertyOne suspended trading on the Australian Stock Exchange yesterday after its Hong Kong backer, iReality, pulled out of a $A6 million ($7.76 million) rescue bid.

LibertyOne owns web developer Zivo, which has 100 staff in New Zealand and which tried a management buyout of the local operation in October.

The buyout proposal was rejected on October 18 in favour of an agreement with iReality to recapitalise LibertyOne.

This involved a cash contribution of $A6 million for LibertyOne shares and options to acquire further shares which would provide the company with up to $A28 million.

On October 19, iReality paid the first tranche of $A2.3 million to LibertyOne, and iReality assumed full management control of the internet company.

LibertyOne independent directors were told on Wednesday that iReality would not proceed with the proposed recapitalisation.

The group's shares closed at 6.3Ac