2008-06-02 — independent.co.uk
Leadcom Integrated Solutions suffered last week as a Citigroup-backed hedge fund walked away from providing a $15m (£7.6m) cash injection after two months of talks, blaming the state of the market.
The Israeli telecoms company said on Friday that Old Lane, the hedge fund set up by the recently appointed Citigroup chief executive, Vikram Pandit, had pulled out of talks. It was the second time this year the group had lost potential financing partners.
The collapse of the talks will be a blow; especially given Old Lane's approach helped to kill a rival offer of a cash injection. In February, Leadcom signed an agreement with the Israeli group Electra. Leadcom was to issue 28 million shares for £7.8m, which would bring Electra's holding to 18 per cent of the share register. The talks collapsed at the end of March, with Electra blaming the fall in Leadcom's share price, its belief that Leadcom's shareholders would not approve the deal, and the emergence of Old Lane.
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