[GST to sell virtually all assets to Time Warner for $690M.]
===========
Friday, August 25, 2000
TWTC to buy GST for $690 mln
--2:15 pm - By Chris Kraeuter
Time Warner Telecom (TWTC: news, msgs) will purchase all of the assets
of GST Telecommunications for $690 million. The purchase excludes GST's
Hawaii assets and residual cash balances. "This agreement complements
our agressive expansion plans to introduce robust broadband products and
solutions to business customers in additional U.S. markets," said Larissa
Herda, president and CEO of Time Warner Telecom. GST filed on May 17 for
Chap. 11 protection in Bankruptcy Court. The deal is expected to close later
this year. Time Warner Telecom shares are up 1/16 to 62 1/8.
===========
Friday August 25, 2:05 pm Eastern Time
Press Release
SOURCE: Time Warner Telecom Inc.
Time Warner Telecom Inc. Agrees to Buy GST Assets for $690 Million
VANCOUVER, Wash. and LITTLETON, Colo., Aug. 25 /PRNewswire/ -- Time Warner Telecom Inc. (Nasdaq: TWTC - news) and GST Telecommunications, Inc. today announced an agreement for
Time Warner Telecom to purchase substantially all the assets of GST Telecommunications, Inc., excluding the substantial majority of GST's Hawaii assets and residual cash balances, for $690 million.
The consideration consists of cash and assumption of certain assumed liabilities. The agreement is subject to the execution of a definitive purchase agreement, approvals of the U.S. Bankruptcy Court for
the District of Delaware and other customary terms and conditions.
``This agreement complements our aggressive expansion plans to introduce robust broadband products and solutions to business customers in additional U.S. markets,'' said Larissa Herda, Time Warner
Telecom's President and CEO. ``We look forward to the synergies and opportunities this agreement offers to customers, employees and shareholders.''
``The combination of GST's assets and Time Warner Telecom's strengths should produce exciting benefits for customers of both companies,'' said Tom Malone, Acting CEO of GST. ``We expect the
transition process to be smooth, and intend to communicate openly and frequently with our customers, vendors, and employees throughout the process.''
GST had filed on May 17, 2000 in the U.S. Bankruptcy Court for the District of Delaware for protection under Chapter 11 of the U.S. Bankruptcy Code. GST sought and received Bankruptcy Court
approval to proceed with an open bidding procedure for the auction of substantially all of its assets. The auction was conducted from August 22 to 25, 2000. GST appeared before the U.S. Bankruptcy
Court for the District of Delaware today and received approval to conclude the bidding process and proceed toward a sale to Time Warner Telecom Inc. The agreement is expected to close later this year
subject to granting of the final sales order by the court and regulatory and other approvals.
Time Warner Telecom Inc., headquartered in Littleton, Colorado, is a leader in building local and regional fiber optic networks to deliver its comprehensive suite of communications products and services
to business customers. The company currently provides ``last mile'' broadband data, voice and Internet connections in 22 U.S. metropolitan markets. Los Angeles/Orange County, Calif. and Dayton,
Ohio markets plan to launch this year with five additional markets planned for launch in 2001. For more information, visit www.twtelecom.com.
GST Telecommunications, Inc., an Integrated Communications Provider (ICP) headquartered in Vancouver, Wash., provides a broad range of integrated telecommunications products and services,
including enhanced data and Internet services and comprehensive voice services throughout the United States, with a robust presence in California and the West. Facilities-based GST continues to focus
on its western regional strategy by anchoring its next generation networks in local markets and connecting them via long haul fiber networks. Visit GST's Web site at www.gstcorp.com.
This press release includes Forward-Looking Statements (as defined in the Private Securities Litigation Reform Act of 1995) regarding the companies' growth and prospects. The accuracy of these
statements is subject to a number of business, market and other factors beyond the companies' control, including those stated above and as periodically described in their SEC filings, and actual results
may be materially different than such statements suggest. For further information, investors are referred to each of the companies' most recent Form 10-K, 10-Q and other filings, which statements are
incorporated into this press release.
SOURCE: Time Warner Telecom Inc. |
