Voyager future looks unclear

The future ownership of internet service provider Voyager looks uncertain as the planned $A350 million ($437.5 million) purchase of Voyager parent OzEmail Internet by Eisa begins to unravel.

Melbourne-based ISP Eisa had announced on April 13 that it had secured backing to buy OzEmail, a company 10 times its size, from an investment consortium including the Walt Disney Company, publishing company John Fairfax Holdings' online subsidiary F2, ANZ Banking, and investment group Hastings Funds Management.

But F2 chief executive Nigel Dews said on Tuesday it would pull out of its memorandum of understanding to invest $A40 million in Eisa, as it was "out of whack with what we think is appropriate for our shareholders," and ANZ Banking was reported to be reconsidering the deal.

F2 is blaming its termination of the deal on a weak sharemarket, as Eisa's shares slipped badly in the tech stock correction of April 17.

The company had agreed to buy a 5 per cent stake in Eisa at $A2 a share, but while Eisa shares were worth $A2.94 on March 30, they have traded through most of May at less than $A1.

Eisa's shares fell to a record low following the F2 announcement, closing on Tuesday at 53c, giving it a market capitalisation of $A31 million.

Eisa chief executive Damien Brady confirmed to the Australian Stock Exchange that the agreement to acquire OzEmail was being renegotiated with Uunet.

However, he believed the acquisition could go ahead without Fairfax.

Yesterday, Uunet spokesman Mike Ward refused to comment on the implications for Voyager should Eisa's purchase fail.

Voyager general manager Bob Davis said he was aware of developments, but had received no feedback from Australia.