US ad firm flees to Sarbanes-free UK

Hudson Sandler is handling the AIM flotation of a US-based ad firm that claims Sarbanes-Oxley has made the Nasdaq too expensive.

Burst Media, a top 20 US and UK online advertising firm in terms of audience, announced its intention to float this week. A share issue is expected to give the firm a market value of up to £80m.

The company had already rejected a listing on the US market's most important technology and new media index because of the expense in complying with US regulations.

'It's one of the first American companies to float on AIM but it could be the start of a trend,' said Hudson Sandler director Nick Lyon, who is leading the account.  'Sarbanes-Oxley is forcing companies out of the US.'

Hudson Sandler also represents investment bank Altium Capital, which has been appointed as Burst's nominated adviser and corporate broker.

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