360networks: Not For Sale, But Would Have To Study Offers
VANCOUVER -- Telecom network operator 360networks Inc. (TSIX) isn't for sale, but the company would have to "look closely" at any potential takeover offer, chief executive Greg Maffei said Thursday at the annual meeting.
Responding to a shareholder's question, he said management and directors are investors - and believers - in the company, but would be obliged to look at any offers that come in to determine the best response.
"Our mission is to operate a global network," Maffei told about 300 people at the meeting, noting that obviously the company is now in "a very difficult environment."
As reported, 360networks is seeking another US$300 million in working capital from Alcatel S.A. (ALA) and other shareholders. This week it scaled back forecasts for 2001 capital expenditures, revenue and earnings because of the telecom industry downturn. Both Standard & Poor's and Moody's have said they are reviewing the company's credit ratings.
Maffei didn't say when the company hopes to obtain the US$300 million in funding, nor did he give details about what would occur if the money doesn't appear.
"Obviously if we can't raise the capital, we will do all the things we can to set a business plan that works with what we have," Maffei said after the meeting.
At the meeting, one shareholder suggested the company should allow existing shareholders to buy more shares at their current depressed price and use the proceeds to buy up 360networks' outstanding high-yield debt, which he said traded at about 10 U.S. cents on the dollar this week in the secondary market.
The shareholder, Ken Peterson, chief executive of Columbia Ventures Corp. in Vancouver, Wash., said he has watched with "unbelieving horror" as the markets have harshly judged 360networks recently.
"In short, let your shareholders add equity to this company and aggressively buy back our bonds," said Peterson.
Maffei said 360networks had considered such a rights offering and called it "potentially attractive," but added it would take too much time to put together and he's not sure shareholders would put up more money.
Another shareholder asked Maffei if he planned to "stick it out through thick and thin."
Maffei's response was a verbose "yes"; he noted he is very committed to 360networks and has an "enormous reservoir of support" from employees.
Company Web Site: 360.net
-Lynne Olver, Dow Jones Newswires; 604-669-1595; lynne.olver@dowjones.com |
