GlobalNetFinancial.com and Telescan have terminated their five-week old merger agreement. The two companies have given no explanation for the abandonment of the deal.
The two companies have entered into a share buy back to return common stock exchanged under the merger agreement. GlobalNetFinancial will also purchase 276,495 shares of its own common stock currently owned by Telescan for $6.00 per share and will make an additional payment of $250,000 in respect of certain of Telescan's expenses.
In a joint statement, Stanley Hollander, chairman & CEO of GlobalNetFinancial, and Lee Barba, CEO of Telescan, say: "Both GlobalNetFinancial and Telescan possess core strengths that will enable each company to separately pursue its respective growth strategies, which we have mutually agreed is in the best interests of our respective companies and shareholders".