PacNet to explore options

Singapore-based internet services provider Pacific Internet (PacNet) says it has appointed BNP Paribas Peregrine to act as its financial advisor as it looks to identify and evaluate options for maximising shareholder value. PacNet is at the centre of a takeover battle between two companies, Vantage Corp and MediaRing. Vantage Corp completed its acquisition of a 28.6% stake in PacNet in February this year, making it the largest shareholder. However, soon after telecom services group MediaRing made a surprise cash bid for the company, offering to acquire all of PacNet’s shares for USD110 million – or USD8.25 a share. Vantage is arguing that the MediaRing offer is grossly undervalued, and has been urgently snapping up more shares in the ISP, but PacNet now says it wants to explore all options to maximise shareholder value. It has not rejected MediaRing’s offer outright, but its latest move to appoint a financial advisor could mean that the takeover battle will intensify.