Two telecommunication companies are reversing into Freedom4 Group, the cash shell left after Pipex disposed of its of its internet hosting business. The company, to be renamed Daisy Group, is also raising £83m through a placing at 4p a share.

The new group, which is expected to have a market capitalisation of about £200m at the placing price, will also have net cash of about £50m for acquisitions. Its combined revenues will be approaching £100m, generating earnings before interest tax depreciation and amortisation of about £20m.