Lycos Europe favours U.S., Asian buyers -CEO in FT

FRANKFURT, May 13 (Reuters) - Lycos Europe, a loss-making part of Internet pioneer Lycos, sees itself as an attractive target for a U.S. or Asian buyer, its chief executive told the Financial Times as it embarks on a strategic review.

"A typical U.S. shareholder would look much more aggressively at the upside," Christoph Mohn said in an interview published on Tuesday.

"In the U.S., you have the feeling that when people believe in an idea and a strategy, they don't mind so much about the numbers," he said, adding that Lycos Europe could be a valuable partner for a U.S. or Asian media or telecoms company.

He said existing U.S.-based Internet groups such as Yahoo (YHOO.O) or Time Warner's (TWX.N) AOL could also find Lycos Europe attractive.

Lycos Europe -- which provides Internet search, Web hosting, email, social networking and online shopping tools -- is controlled by German media group Bertelsmann and Spanish telecoms company Telefonica (TEF.MC).

But the company said last month it had appointed Dresdner Kleinwort to advise it in a strategic review "which may include, inter alia, a change or replacement of the main shareholders".

The rest of Lycos, still one of the world's top Internet portals, is now owned by South Korean Internet company Daum Communications (035720.KQ).

Mohn, who is heir to the Bertelsmann empire, said Lycos Europe could be a cheap way for a U.S. or Asian buyer to enter the European market.

"If you want to enter the Internet industry, to do that on a greenfield (basis) is very difficult," he said.

Lycos Europe (LCYE.DE) now has a market capitalisation of 96 million euros ($148 million) and its shares closed at 0.51 euros on Monday, less than one-twentieth of the 24 euros for which they sold in the company's oversubscribed initial public offering in 2000.

The company made a loss before interest, tax, depreciation and amortisation (EBITDA loss) of 18.2 million euros last year on sales of 76.7 million euros.

Mohn told the FT that Lycos Europe's strategic review would conclude in the second half of this year. (Reporting by Georgina Prodhan; Editing by Louise Ireland)