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Ionica rescue on the cards

Thursday 24 September 1998 18:02 EDT
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IONICA, the troubled wireless telecoms company, yesterday revealed it is in talks with a strategic investor which could lead to it being rescued "in the near future." Ionica said some holders of its pounds 300m of bonds had indicated they were willing to exchange the bonds for shares in the investor, thereby opening the way for a takeover. The company named Anthony Coleman (pictured), former finance director of Yorkshire Water, as chairman.

Ionica warned that any deal was likely to be struck at less than the company's current share price. Ionica revealed that losses for the year to March quadrupled to pounds 173m. In the quarter to June, losses deepened to pounds 43m from pounds 30m in the same period of the previous year. Ionica shares closed down 0.5p at 22p.

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