Failed e-tailer Webvan is in talks to sell its technology to Mercury Acquisitions Corp, a company controlled by Webvan’s founder Louis Borders.

Borders is expected to pay around US$2.5m for the technology, but other potential buyers will have the chance to submit higher bids at an auction scheduled for 1 October.

Foster City, Calif-based Webvan Group Inc filed for protection under Chapter 11 of the US Bankruptcy Code in July.