Brainspark bows to Italian offer

BRAINSPARK, the internet investment firm that was worth £164m at the height of the dotcom boom, today recommended a cash offer from AI Software valuing it at only £5.2m.

The 4.25p-a-share offer from the Italian healthcare and financial software company, which already owns 3.69% of Brainspark, has secured the irrevocable support of a further 46.01% of Brainspark's shareholders but has split the Brainspark board and is opposed by the company's single largest shareholder.

Brainspark said non-executive chairman Donald Caldwell and non-executive director Sheryl Daniels-Young, who represent American-based group Cross Atlantic's 28.6% holding in Brainspark, had decided not to accept the offer.

They have also refused to follow other Brainspark executives who will step down if the AI offer succeeds.