IBC Feature Company Update -- Bloomberg Reports Buyout Speculation on WorldPort Communications
IBC Feature Company Update -- Bloomberg Reports Buyout Speculation on
WorldPort Communications
IRVINE, CALIF. (May 20) BUSINESS WIRE -May 20, 1999--IBC
(www.Ibchannel.com) Thursday reported that according to Bloomberg,
analysts said shares of WorldPort Communications Inc. (Nasdaq:WRDP)
climbed as much as 27 percent this week amid speculation that an equity
investment or takeover is imminent.
Helping to fuel the speculation was Global Crossing Ltd's (Nasdaq:GBLX)
agreement earlier this week to merge with US West (NYSE:USW).
WorldPort has connections to France, Germany, Belgium and the United
Kingdom through an agreement with Viatel Inc. (Nasdaq:VYTL). WorldPort
also buys capacity in the United States from No. 5 long distance
company Frontier Corp. (NYSE:FRO), which Global Crossing has agreed to
buy for $12.5 Billion.
According to Sands Brothers analyst Alan Feldman, "WorldPort is a
premier takeover target." Feldman currently rates WorldPort a buy with
a $20 target and said he believes the company could be sold to likely
suitors that may be looking to enter or expand their presence in Europe
including IXC (Nasdaq:IIXC), ICG Communications (Nasdaq:ICGX),
Intermedia Communications (Nasdaq:ICIX), STAR Telecommunications
(Nasdaq:STRX), and Global TeleSystems Group Inc. (Nasdaq:GTSG).
In The Netherlands, WorldPort serves as the backbone for @Home
(Nasdaq:ATHM) Internet traffic and carried 195 million minutes of ISP
traffic in 3Q98. WorldPort Communications is The Next Generation
Carrier's Carrier boasting a Lucent (NYSE:LU) designed fiber optic
network which provides international long distance services to the
Americas and Europe.
The company's focus is on providing interconnectivity and high capacity
bandwidth products for voice, data, video and Internet traffic to long
distance carriers, distributors and Internet service providers.
Additionally, WorldPort is investing in the next generation of high
capacity bandwidth through its development of KennisNet in the
eNtherlands in partnership with Internet2 consortium.
Internet2 is a consortium of leading U.S. universities and corporations
who are dedicated to developing the next generation of Internet
technologies. Internet2 Corporate Partners include Qwest Communications
(Nasdaq:QWST), 3Com (Nasdaq:COMS), Advanced Network & Services Inc.,
AT&T (NYSE:T), Cabletron Systems (NYSE:CS), Cisco (Nasdaq:CSCO), FORE
Systems (Nasdaq:FORE), IBM (NYSE:IBM), Lucent Technologies (NYSE:LU),
MCI Corporation's (Nasdaq:WCOM), Newbridge Networks (NYSE:NN), Nortel
Networks, and StarBurst Communications.
For more information, see ibchannel.com.
Note: IBC has received 75,000 WRDP shares as compensation for
advertising. IBC or its affiliates may buy or sell shares in these
companies. Read the disclaimer at IBC's site for more information
regarding the relationship between IBC and its clients. Except for
historical information, all of the statements, expectations and
assumptions contained in the foregoing are forward-looking statements.
The realization of any or all of these expectations is subject to a
number of risks and uncertainties and it is possible that the
assumptions made by management may not materialize.
-0- JV/np* KM/np
CONTACT: Interactive Business Channel
Matthew Marcus, 949/442-8919
www.ibchannel.com
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