NTT Communications to buy Verio for $5.5 billion
NEW YORK, May 7 (Reuters) - NTT Communications, a unit of Nippon Telegraph and Telephone Corp., (NYSE: NTT) on Sunday said it would buy the 90 percent of Web site manager Verio Inc. (NASDAQ: VRIO) it does not already own for about $5.5 billion.
Under the agreement, Tokyo-based NTT will acquire Englewood, Colo.-based Verio for $60 a share. The total value of the deal does not include the the 10 percent of Verio shares, worth about $500 million that NTT bought in May 1998, NTT said.
The agreement calls for a U.S. subsidiary of NTT to begin a tender offer for the Verio shares no later than May 17. The offer is subject to customary terms and conditions, including the tender of the number of shares of common stock that would constitute at least a majority of Verio's outstanding shares including those NTT already holds.
The deal is expected to be completed in the third quarter of 2000, NTT said.
Shares of Verio, which provides Web hosting services to small and medium sized businesses, on Friday closed at 35-15/16, down 15/16 on the Nasdaq. Its 52-week share price high was 84-15/16, its low was 22-9/16.
U.S. Depositary shares of Nippon Telegraph Friday closed up 2-1/16 to 66-1/4 on the New York Stock Exchange.
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