Lycos takes a hit for pre-slowdown investments

NEWS Internet portal Lycos Europe is set to take a E700m (£444.3m) charge after the value of investments and recent purchase went belly up in the technology slowdown. The charge is related to Lycos' purchases last year of rival European companies MultiMania and Spray Networks. The company must take a loss for the difference between what it paid for its rivals and what they are worth now. The company shares have dropped about 90 per cent in the past 12 months, and are well off the E20 (£12.69) mark hit in early 2000. In the third quarter, revenue fell to E40.2m (£25.5m) from E41.6m (£26.4m) in the three months to June 2001. As of 11:20(BST), Lycos Europe shares were up 3.45 per cent to E1.09 (69p).