QXL does not see Polish settlement affected by regulatory internet auction probe

QXL Ricardo PLC, the online auctioneer, said it does not expect the settlement proposed for its Polish unit to be affected by the inquiry into the internet auctions market by Poland's competition authority.

QXL announced on June 29 that it had regained control of its former subsidiary QXL Poland after reaching a conditional agreement with Wouwer Investeringen and Tomasz Dudziak.

The internet auction probe started on June 21, and is therefore not related to the settlement, QXL said.

The group lost control of QXL Poland following a disputed issue of new shares representing 92 pct of QXL Poland in December 2002. QXL claimed the share issue was invalid since it was undertaken without the consent of the company.

Under the settlement, QXL will issue shares representing around 24 pct of the company over a period of three years in exchange for the entire share capital and undisputed control of QXL Poland.

QXL's shareholders are voting on the proposed settlement

at the company's EGM on July 24.

The Polish internet auction probe is expected to include QXL Poland, QXL said. It said it is seeking clarification about the implications of the inquiry.
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