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Friday November 5, 9:05 am Eastern Time
Teligent gets Microsoft, Hicks Muse investment
VIENNA, Va., Nov 5 (Reuters) - Communications company Teligent Inc. (NasdaqNM:TGNT - news) said on Friday that it raised $500 million from an invester group led by software titan Microsoft Corp. (NasdaqNM:MSFT - news) and investment firm Hicks, Muse, Tate & Furst Inc. to expand the company's high speed data network.
At closing, the group will own about 14 percent of Teligent's outstanding common stock.
Microsoft and Hicks Muse each will invest $200 million in Teligent preferred stock. The conversion price of $57.50 per share represents a 28 percent premium over the previous five-day average closing price on the date the agreement was reached.
Other investers include Chase Capital Partners, an affiliate of Chase Manhattan Corp. (NYSE:CMB - news); DB Capital Partners, an affiliate of Deutsche Bank AG ; and Olympus Partners of Stamford, Conn.
``This new capital will provide funding for Teligent's core business initiatives into 2001 and our initial expansion into international markets,' said Teligent Chairman and Chief Executive Alex Mandl. ``In addition, we expect to work closely with Microsoft as we expand our data and Internet initiatives.'
Teligent provides its high-speed data access, or broadband service, through wireless transmissions from antennas on the roofs of customers' buildings, combined with data transmission over telephone lines, in 522 U.S. cities and towns.
Hicks Muse will nominate Tom Hicks, Chairman and Chief Executive Officer of Hicks Muse, to become a member of Teligent's board of directors. |
