'Stench' threatens Radionet deal

By PETER GRIFFIN

A potential buyer of Wilson Neill subsidiary Radionet says the company is losing value by the day as it sheds customers and suffers from the tainted reputation of its fallen parent company.

Simon Wallace, the managing director of tech investor Cube Capital, said his company begun negotiating to buy Radionet six months ago but became frustrated with Wilson Neill management and withdrew its offer of around $1 million at Easter.

"I've gone off the boil because I've had a gutsful of those guys," said Wallace.

"Wilson Neill have wrecked [Radionet] because of the stench that surrounds anything to do with them."

Radionet was placed in receivership after Wilson Neill succumbed to a similar fate on April 4, leaving five companies owned or part owned by Wilson Neill in receivership or liquidation.

Cube planned to buy the name and assets of Radionet and restructure the wireless internet provider.

Wallace disputed the claims of Radionet's receivers, Corporate Finance, that the company had about 600 clients and had costs under control. He said the number of clients was closer to 250.

"People are right now arranging to have their ISP hosting done with other companies," he said.

"It's losing money month on month. I've been through those accounts."

Receiver Steve Tietjens said he "could not say accurately" how many customers Radionet had.

"Right now with the company gone into receivership there are customers who may not carry on being customers. It's a moving target."

A number of parties were interested in buying the business, he added.

Wallace said Cube's acquisition of Radionet was now a low priority, but the company was still interested if the price was lower.