PSIX up 26.5%, Takeover(?) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PSIX up 26.5%, Takeover(?)

PSIX 68.00

-0.8%

Jan 6 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JAMES P. McVEIGH who wrote (1849)	1/22/1998 5:15:00 PM
From: Ken Turetzky	of 5650

Here's the next part: =PSINet -3: Former Digex CEO Opposed To IXC Alliance Dow Jones News Service via Dow Jones Under the terms of the planned alliance between PSINet and IXC, IXC would provide 10,000 OC-48-equivalent route miles on its nationwide fiber network for a 20-year term in exchange for 20% of PSINet's common shares. USinternetworking's McCleary said that in his original proposal, he asked PSINet to postpone Friday's shareholder vote on the IXC deal by at least 120 days and proposed to instead submit an alternative tender offer worth $10 a share for at least 51% of the company. McCleary's proposal is also contingent on obtaining necessary financing, but he said he believes he can put the financing together quickly. McCleary said he believes the deal with IXC would be highly dilutive to PSINet's shareholders. The terms of the deal state that if IXC's stake in PSINet is worth less than $240 million one year after IXC delivers the fiber capacity, PSINet will give IXC cash or additional stock to return the value to that level. McCleary is also concerned that the agreement establishes a predetermined price for bandwidth because he expects the price of bandwidth to fall at the end of the year. He added that since fiber prices move around, it is important to have flexibility in these types of deals. But PSINet Chief Financial Officer Edward Postal maintained that the deal with IXC is a fair one and noted that two very similar, large bandwidth deals have been struck since PSINet reached its agreement with IXC. He added that McCleary's proposal would require PSINet to breach its agreement with IXC, which the company has decided is not in its best interest. In a press release earlier, PSINet said the alliance with IXC is an integral part of its business plan and that the company "remains enthusiastic about that plan."

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next