Chello - Major News - Front page of Financial Times:
The fact that they were able to time this less than 48 hours before earnings shows that somebody is starting to get it right at ATHM. Next stop Korea.
Ah, Any comments on the deal? It looks like might even get a IPO out of this.
news.ft.com
Excite to merge its non-US assets with Chello
By Peter Thal Larsen
Published: July 17 2000 22:22GMT | Last Updated: July 17 2000 22:30GMT
ExciteAtHome, the high speed internet provider, is poised to combine its international assets with Chello, the European broadband internet group, to create an industry player valued at approximately E5.5bn.
The deal, which may be announced as early as Tuesday, would see Excite fold all its assets outside the United States into the new group, which will be called Excite Chello.
The agreement will end months of uncertainty about the future of Chello, which had been scheduled to launch an initial public offering on the Amsterdam stock exchange earlier this year. The listing was postponed after Chello revealed it was in talks with potential strategic partners.
The deal will create an international broadband internet group with access to high-speed internet links in Europe, Japan, Australia and Latin America.
According to people close to the negotiations, Chello would absorb Excite's international assets in a 50-50 merger which would value the group at E5bn-E6bn. ExciteAtHome and United Pan-Europe Communications, the European cable operator, would be the major shareholders in the combined entity.
However Liberty Media, the US media group run by John Malone, is expected to make an investment Excite Chello in return for a substantial shareholding in the business.
Earlier this month Liberty took a controlling interest in United Globalcom, UPC's parent company.
Chello's operational management, led by chief executive Roger Lynch, is expected to take control of the day-to-day running of the enlarged business.
It is thought the deal will be conditional on Excite obtaining clearance from its international joint venture partners. Although the US group has been pursuing a strategy of taking control of its international operations, it still has regional partners in numerous countries including the United Kingdom, where it has a joint venture with British Telecommnications. Most of Excite's joint venture partners have change of control clauses which would be triggered by the deal with Chello.
After obtaining agreement from its joint venture partners, Excite Chello is likely to press ahead with a stock market listing in 2001.
Chello and Goldman Sachs, its financial advisers, declined to comment. ExciteAtHome could not be reached for comment. |
