World online backers threaten to withdraw investment

NEWS European ISP World Online is in danger of losing its investment partners, according to the latest reports. The prospect of investors walking away from the venture is doubly damning for the Holland-based ISP, as the company has gone on record as citing its list of partners as its main strength. According to reports in the Wall Street Journal, Endemol Entertainment, a European TV production and entertainment company, and Novartis, a Swiss-based healthcare company, are threatening to pull the plug on their joint venture to provide content for the World Online portal. But Simon Preston, CEO of World Online UK, speaking to silicon.com in March, said its potential customer base could take heart the company's prestigious investor list: "We raised over £1.1bn in floatation and the high profile of our shareholders indicates that we are a company that's here to stay." The news comes at the end of a stormy period for the company. In March, its founder, Nina Brink, jumped ship, its IPO was hit by allegations of obfuscation from investors, and its stock price plummeted by 70 per cent. Last week, more than 3,500 investors who bought shares in World Online formed a foundation to try to get their money back from the company and the banks that co-ordinated the IPO. The main contention the group has is that World Online failed to provide clear information on a deal in which Brink sold the majority of her stake in the company in December, but made a profit on shares sold prior to the 17 March floatation. However, another would-be partner, Royal/Dutch Shell, has also put the brakes on plans to launch a subscription free service with the ISP, but claimed the decision had nothing to do with the IPO controversy. Margaret Von Kampen, spokeswoman from World Online International, refused to deny or confirm the stories in the Wall Street Journal, but claimed the partner plans were still on track.