To all: Perhaps this will make some doubters feel better. JDN
The WorldCom Corporation is in advanced talks to acquire Intermedia
Communications Inc., a telecommunications operator, for almost $3
billion in cash and stock, executives close to the negotiations said
yesterday.
Intermedia, based in Tampa, Fla., has been an extremely attractive
takeover target because it has a 54 percent stake in Digex Inc., a
so-called Web hosting company, which provides storage for corporate
Web sites, monitoring their performance and providing Internet
connections. It is viewed as the crown jewel of Intermedia, which sells
basic phone services to businesses and government agencies and basic
Internet connections.
According to executives close to the deal, WorldCom entered
negotiations with Intermedia last week after talks between Intermedia
and Global Crossing, the telecommunications company based in
Hamilton, Bermuda, broke down. A third suitor, Exodus
Communications Inc., offered to acquire Digex, based in Beltsville,
Md., directly for close to $8.5 billion in stock but was rebuffed by
Intermedia
NOTE THAT WCOM ends up owning 54% of Digex and DIGEX turned down 8.5 BILLION!! Deal is starting to look better in my mind. |
