BT makes recommended cash offer for PlusNet plc

[BGonaSTICK]

BT today announced it has made a recommended cash offer for PlusNet, offering 210p per share, valuing the company at approximately £67m.

The offer for PlusNet fits perfectly with BT’s strategy of providing its customers with the most that broadband can deliver. Broadband is increasingly becoming more than just fast internet access and PlusNet has a strong reputation for both customer service and innovation.

Operating since 1997, PlusNet was listed on the Alternative Investment Market in 2004. It has grown rapidly during the last few years and now has close to 200,000 broadband customers as well as an additional narrowband customer base. If the offer is accepted, PlusNet will retain its brand and distinct identity. It will continue to operate from its base in Sheffield and Lee Strafford will remain its CEO. For the 12 months to 30 June 2006 the company had revenues of £41m, EBITDA of £7.5m and net income of £3.9m.

BT Retail chief executive, Ian Livingston said: “This offer makes great sense for BT. We already provide the UK’s most popular and best-performing ADSL broadband service and this acquisition will ensure that even more people can enjoy our market-leading services. PlusNet’s customers and employees will benefit from the combination of PlusNet’s excellent platform and access to BT’s resources and technology development.”

Lee Strafford, CEO of PlusNet said: “I am pleased to announce BT’s offer this morning. Whilst the PlusNet Directors continue to believe that PlusNet is a high quality business, our sector is consolidating and there are considerable benefits to PlusNet in becoming part of BT. BT recognises the importance of retaining PlusNet’s identity and culture and I believe this will give rise to exciting opportunities for PlusNet, our customers and our employees.”

The directors of the company, having unanimously recommended the offer, have provided irrevocable undertakings to accept BT’s offer.

[nanochickin]

After being a PlusNet customer for 12 months i can't really say that I'm surprised that they are getting bought out by BT. Lets hope there service gets better once there under BT, It can't really get any worse, Can It?

PlusNet were the most troublesome ISP i have ever had the displeasure to deal with. I can definitely recommend everybody to stay well clear of PlusNet



Nano

[BGonaSTICK]

... but hang-on, the above announcement says:

PlusNet has a strong reputation for both customer service and innovation...

Are you daring to disagree with that?!?! :roflmao:

[nanochickin]

Are you daring to disagree with that?!?! :roflmao:

Most definately. My e-mail went down every otherday for at least an hour at a time usually longer, and guess what customer services didn't give a flying f**k as long as soon as they got their money

I signed up for an unlimited package only for them to change the terms and conditions halfway through and impose a download limit of 25GB a month on my account forcing me to upgrade to the next package at an extra £7 a month for no improvement in line speed. > 25Gb would only last me about 7-10 days.

The only time they actually took notice is when i told them i was taking my business elsewhere and i was hit with the usual "We can give you a free upgrade Sir if you stay with us" Ar***oles!!!.

Much better now i'm with Televest. Mind you Televests system has been down for about 2 hours in my area. Its only just come back on, but then again its the first time i've had any problems in 4 months so i've no reason to complain.



Nano