Re: MFNX/BEL 2 Billion 19% stake, below...
This action was foretold, I believe, when BEL agreed to permit MFNX colocation rights "at the strand interconnect level on their mainframes" about four months ago. I believe that BEL, in this respect, is positioning themselves for some real breakaway activity, from a networking modality perspective (perhaps the introduction of dark fiber services of their own, maybe lambdas, sooner down the road, than we would ordinarily think from a BOC).
The issue that appears to be answered next is, How does MFNX's fiber swapping agreement with Williams play with this new part ownership role of BEL? Anyone have any thoughts on this?
I think that they (BEL)may have seen the light. Stay tuned, and comments welcome.
Regards, Frank Coluccio
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Bell Atlantic takes 19 percent stake in Metromedia
Thu Oct 07 09:37:00 EDT 1999
NEW YORK, Oct 7 (Reuters) - Bell Atlantic Corp.
said on Thursday it will take a 19 percent stake in Metromedia
Fiber Network Inc. as part of a $2 billion deal that
will give the giant U.S. local telephone operator access to a
key nationwide fiber optic data network.
Under the deal, Bell Atlantic will pay Metromedia $500
million for the use of its network -- in 50 major U.S.
metropolitan markets and several cities abroad -- for 20 years.
Bell Atlantic will also take a 9.9 percent stake in New
York-based Metromedia for $700 million in newly issued shares
at $28 per share. It will also buy about $975 million in debt
securities, increasing Bell Atlantic's investment in Metromedia
to 19 percent.
Metromedia said it will use the investment to accelerate
the growth of its network, which can be used to transmit data,
voice, video and multimedia communications, both in the United
States and abroad.
The news was released before the markets opened on
Thursday. On Wednesday, shares of Bell Atlantic closed at
66-11/16 on the New York Stock Exchange and Metromedia ended
the day at 31-1/4 on the Nasdaq.
"This relationship extends our data network and advances
our strategy to be a nationwide and global provider of
leading-edge communications services," Bell Atlantic Chief
Operating Officer Larry Babbio said in a statement.
Bell Atlantic and other major U.S. local phone companies
are in race to capture the growing wireless as well high speed
Internet access markets across the United States.
Last month, Bell Atlantic agreed to a joint venture with
Britain's Vodafone Air Touch Plc that would combine
Bell Atlantic's East Coast wireless telephone operations with
Vodafone's West Coast business.
Bell Atlantic is also in a $53 billion deal to buy GTE Corp
and has said it will fold GTE's wireless assets into
its Vodafone venture, which would create one of the nation's
largest mobile phone company with 20 million customers.
This deal, said Babbio, "complements the reach of the GTE
national backbone network and our new wireless venture with
Vodafone."
((New York Newsdesk 212-859-1631))
REUTERS
Rtr 09:37 10-07-99
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