IWL fails to acquire JDV
IWL’s plan to take full control of rival online broker JDV has failed, after the deal was blocked by two of JDV’s major shareholders.
Nonetheless, the advisory software and online broking firm’s offer through IWL Broking Solutions (IWLBS), which closed last Friday night, has still given it a 37 per cent interest in JDV, making it the company’s largest shareholder.
IWL will not take full control of JDV, which is responsible for the online trading services of Westpac Bank, because JDV’s other two major shareholders, Westpac and Royal Bank of Canada, which each hold 28.66 per cent of the company, rejected IWL’s scrip offer.
“As IWLBS did not receive the requisite level of acceptances, IWLBS is not entitled and, accordingly, will not proceed, to compulsory acquisition,” IWL said in a statement released today to shareholders.
The rejection is a blow to IWL’s strategy to augment its level of participation in the Australian online stock broking market.
For the past eight months, IWL has posted extraordinary earnings updates every month to try and entice JDV shareholder’s into accepting the takeover deal.
IWL hoped to add JDV to its recent acquisition of Avcol Stockbroking from the now re-named Rivkin Financial Services, which was re-listed on the Australian Stock Exchange as Scarborough Equities on May 20, 2005.
Despite the rejection, IWL chief executive Otto Buttula has indicated that his plans to acquire JDV remain.
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