QXL, the British online auction company that was worth £750 million in the dot.com bubble of 2000, was today sold for just £12 million.

The company, which failed to keep pace with market leader eBay, announced that its independent directors had recommended a 700p-a-share offer from Tiger Acquisition, a group led by QXL management.

QXL directors Jonathan Bulkeley, Mark Zaleski and Robert Dighero will participate in the management of Tiger and will have shareholdings in the company.

Independent directors James Rose and Thomas Power will resign from the QXL board upon the offer being declared wholly unconditional.

Mr Rose said: "As independent directors, we believe the offer provides certainty and value to shareholders, at a price that is unlikely to be achieved in the near future".

It is thought likely that the de-listing of the company, which has a strong presence in Switzerland, Denmark and Norway, could be the first step to an eventual takeover by eBay, which controls more than 90 per cent of the British online market.

The price represents a 114 per cent premium to QXL's closing share price on November 11, the day before it said it was in takeover talks. Shares in the company soared 40 per cent to 670p today.

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