Melbourne-based ISP, Netspace, reveals that it was not actively seeking an acquisition offer, however, has announced its confirmed negotiations with iiNet.

Media speculation was widespread that a $75 million acquisition was on the cards. iiNet called a trading halt , posting a statement confirming it was in talks with Netspace, along with several others.

"It makes good business sense for Netspace on behalf of its owners, to consider all relevant opportunities put forward to us," Netspace managing director, Stuart Marburg, said in a statement.

However, it is usual business for Netspace at this time, despite media speculation.

iiNet also claimed the suggested purchase price quoted in The Australian Financial Review was far below the price that was intended.

The Australian Financial Review reported on Thursday reveals that iiNet has previously disclosed its plans to acquire ISPs along the east coast to expand its presence.