FRANKFURT (dpa-AFX) - Hopes of the hosting subsidiary's imminent IPO did not briefly drive United Internet shares for long on Friday. The papers of the Internet service provider and telecoms group initially shot up by more than five percent, reaching their highest level since mid-September. However, the momentum slowed noticeably in the course of trading.

United Internet shares even gave up their gains entirely in the late morning, lagging behind the strong MDax. The mid-cap index gained 1.3 percent.

United Internet is considering launching the IPO of its hosting subsidiary Ionos in the coming week, according to sources. The company has held early talks with fund managers to get a sense of demand, Bloomberg news agency reported, citing people privy to the matter.

The news should be viewed positively, although it does not come as a surprise, a trader said. Shares in the hosting subsidiary are likely to attract "good interest" in the market./la/ag