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eSpeed Plans To Buy PaperExchange, Closes European Office

Press release from the issuing company

5/29/01 - (WhatTheyThink.com) According to multiple sources, eSpeed plans to purchase PaperExchange and has shut down it's European office. eSpeed is an ASP offering electronic marketplaces in 45 financial and nonfinancial instruments. Sources reached last week said PaperExchange has been negotiating with the publicly traded eSpeed for several weeks. eSpeed has shut down PaperExchange's European office which had 18 employees siting weak market conditions. eSpeed had first quarter revenue of $43.1 million. In April, Howard W. Lutnick, Chairman and CEO said eSpeed would be a major player in new marketplaces. Apparently, paper is one of those new marketplaces. PaperExchange enables buyers and sellers to negotiate pricing and directly transact with one another through its marketplace. PaperExchange charges its seller members a commission based on the total notional value of any successful transaction conducted through the site. The model claims to deliver new levels of efficiency, convenience, choice and flexibility to the pulp and paper industry. Sources said details of the deal would be announced this week.