Internet service provider pioneer iiNet's recently announced trading halt has fuelled speculation about the immediate plans of the company.
iiNet, Australia's third largest internet service provider, called a trading halt on Tuesday this week, followed by a request for a suspension of its stock on Thursday, and today advised that it did not expect to recommence trading on the Australian Stock Exchange until late next week.

The suspension follows a sharp decline in the company's share price over recent months, seeing them trade at $1.69 last week, down from $3.40 in September.
When contacted by WA Business News, analysts following the stock speculated that the trading halt may precipitate one of three outcomes, or a combination of events.
One line of thought is that uncertainty on behalf of iiNet's bankers, will result in the company embarking on a capital raising to address concerns over banking covenants, and provide its bankers will a measure of confidence.
At the same time analysts point out that they don't believe iiNet is in any major financial difficulty.
It has also been suggested that managing director and founder Michael Malone may be about to reduce his holding in the company.
Mr Malone, the First Amongst Equals winner in this year's WA Business News 40under40 Awards, has overseen the growth of the business from its beginnings in 1993 to a position where it generated revenues in-excess of $40 million in 2003.
The other speculation is based around iiNet potentially selling its New Zealand internet service provider, iHug.
Analysts believe such a move would be generally well received by the market.
When questioned about the likelihood of a takeover involving the company one analyst replied that nothing was out of the question, but that he was not aware of any such activity.

Login

(existing subscribers)

The password field is case sensitive.
Request new password

Register for free

(first time users)
FREE: 8 articles per month + twice daily business email alerts