Zivo NZ wants freedom from LibertyOne

By CHRIS BARTON

The New Zealand arm of web development company Zivo is attempting a management buyout from its beleagured Australian owner LibertyOne, whose shares are languishing at 6.6Ac.

New Zealand managers refused to comment, but sources within Zivo, which has 100 staff here, confirmed a management buyout proposal had been put to KPMG Corporate Finance, which is advising LibertyOne.

LibertyOne company secretary Peter Hansen said he did not know if a management buyout proposal had been received, but that a decision on the internet media company's future would be made on October 16. KPMG's Chris Photakis said confidentiality agreements meant he could not disclose what offers were made: "We have received proposals on a raft of options," he said.

LibertyOne has informed the Australian Stock Exchange that discussions are taking place with other parties in relation to the potential sale of its interests in Zivo, Satellite Music Australia and Monet Asia Pacific - a health technology venture with Von Neumann Companies.

LibertyOne built its Zivo operation in New Zealand through the acquisition of web firm Clearview and its 50 staff in August last year for cash and shares worth around $10 million. It then merged with Australian web firm Zivo.

Zivo Australia has about 90 staff after reducing the numbers in its Sydney office in recent weeks.

Potential buyers are believed to include SpikeNetworks, NewTel, Solution 6, Chinadotcom and NZ-based Advantage Group and IT Capital. The latter two companies have significant web development operations here and both have their eye on the Australian market.

The LibertyOne story has all the elements of a success-to-disaster dotcom rollercoaster ride. The company started out with big plans for a Nasdaq listing which never eventuated. As well as web firms it also acquired rights to "net properties" such as auction site uBid which it began rolling out in Australia and New Zealand, and sites for Australian celebrities including Pat Rafter and Greg Norman.

The company flagged a restructuring of its technology investments in early August, which led to the closure of the loss-making uBid auction site and Pat Rafter's oncourt site, among others.

Its stock reached a high of $A2.58 in December last year but now it "does not have sufficient funds to provide the working capital needed to achieve an appropriate long-term return for shareholders."