News Burst: QXL revises terms of ricardo.de merger

UK auction firm's troubled merger plans get the go-ahead after review of new information

QXL.com has reached an agreement to merge with German online auctions firm ricardo.de, after facing down a host of difficulties. If completed, the merger will create one of Europe's largest e-commerce sites and help bolster QXL against imminent competition from US-based firms such as eBay.

QXL threw the merger into doubt earlier this month after claiming it needed to review new information from ricardo "primarily related to the [firm's] current trading and financial performance".

Under the new terms of the deal, released Friday, QXL will offer all ricardo shareholders 34 QXL Ordinary Shares for each ricardo share, for a deal totalling about £171.2m based on QXL's 59p closing price on the London Stock Exchange Thursday.

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