bol.com IPO is put on ice

Bertelsmann has put the flotation of online bookseller bol.com on hold, blaming the weak Neuer Markt for the decision.

Christof Ehrhart, vice president of corporate communications at bol.com said: "With such a weak market at the moment we would not get a fair valuation of the company if we float now. We have put it on hold until there is a recovery."

Jonathan Steel, chairman at research house the Bathwick Group, said this is only a slight 'blip' and things will soon pick up. He said: "The market has been through a very turbulent period over the past couple of months. Confidence may have been lost in the short-term but not long-term."

Steel said that experienced traders are moving in and out of these stocks very quickly and are maximising profits from a bad market.

According to Steel, companies are finding pitching themselves in an uncertain market a no-win situation. He said: "If they pitch too high the company gets attacked, too low and people think something is wrong and they will still come under attack."

The bol.com was due to happen this month on Frankfurt's Neuer Markt but it has followed the guidance of its advisors Dresdner Kleinwort Benson to put it on hold.

bol.com's decision comes on the back of low investor confidence surrounding business-to-consumer Internet stocks, which was highlighted by the highly publicised flotation of Lastminute.com.