Management buy out at QXL

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Shares in UK auction site QXL Ricardo have surged by more than 40%, after management agreed to take it private in a £12m ($22m) buyout deal.
Tiger Acquisition, a company formed to make the offer, plans to buy QXL in a cash deal.

The agreement ends widespread speculation that the company would be snapped up by a rival, possibly US internet auction giant eBay.

QXL has struggled in the face of eBay's growing dominance of the market.

QXL has recommended shareholders accept the offer of 700p per share, which represents a premium of 114% on QXL's closing share price on 11 November.

The management team of Tiger Acquisition includes QXL chief executive Mark Zaleski, as well as directors Jonathan Bulkeley and Robert Dighero.

They plan to take the company private, while QXL's independent directors Mr Rose and Thomas Power will resign their posts.

QXL shares closed down at 671 pence.

source: www.bbc.co.uk