eftel good target for iin

IMHO,

Eftel (asx:EFT) is a very likely candidate for iinet take over target. Below are my reasons.

Michael Malone clearly stated today that they are in discussion with a few ISPs including netspace. Given current iinet balance sheet, it is possible for iinet to take over a few tiny ISPs.

EFT MC = $4.25mil with 100k users
comparing this to netspace 80k users, less than $60mil
Even if iinet pay EFT a premium of 200%, EFT still a lot cheaper than netspace. Also netspace has heaps of optus customers which can be difficult to transfer on-net .

lets look at other possible ISP targets:

Internode - Adelaide based company that has quite a bit of market share (300k users is my guess), might be a bit too expansive for iinet to eat up. Does not fit the description of East coast ISPs.
Dodo - An Optus reseller that has a terrible reputation, even worse than no-frills TPG net. I can't see how MM can put a spin on the dodo brand.

Exetel - iinet and Exetel get along well? Didn't they just call each other "retards" during the iitrials? Who knows, business is business, they might get together just for the $$.

There are a few other ISPs such as adamnet etc that I do not know much about.

Disclosure: I hold iin and recently took a punt in eft. Please do your own research! Above is NOT financial advice!