Bebo paydate

JOHN NAGLE got one piece of good news this week - and from an unlikely source, writes Ciaran Hancock.

Payzone's recently deposed chief executive is set to receive a cheque in the post from his nemesis, Balderton Capital, relating to the $140 million sale of the venture capital group's 15.7 per cent stake in the social networking website Bebo.

Nagle invested $1 million in Balderton's second fund, which invested in a range of businesses, including Bebo.

It is not clear how much Nagle will receive, but given that Balderton made a return of nine times its original investment, it should significantly bolster his bank balance.

Nagle was ousted from Payzone on Monday along with its chief financial officer, John Williamson. Balderton is Payzone's biggest shareholder, owning about 40 per cent of the business, and it supported the removal of the two executives.

It remains to be seen how Nagle will spend his windfall. He chose not to participate in the €8 million Payzone fund-raising last month, which valued the new shares at 47.75 pence sterling, the level at which the stock was trading at the time of its suspension on January 17th. That fund-raising diluted Nagle's stake slightly to about 10 per cent.

It is not clear when the shares will resume trading, but don't bet against Nagle dipping into the market if they are available at less than 47.75 pence. He would like nothing more than to add to his Payzone stake at a price below what his fellow investors shelled out last month.