PSINet to sell Inter.net subsidiary - report
WASHINGTON, March 2 (Reuters) - Internet access provider PSINet Inc (NASDAQ:PSIX). , was expected to announce on Friday the sale of its Inter.net Global Ltd. subsidiary that sells Internet access services to 600,000 consumers worldwide, the Washington Post reported.
Inter.net -- pronounced "Inter dot net" -- was being sold to the unit's management, led by Kurt Baumann and David Browning, the Post said. It will operate without financial backing from PSINet, which will retain minority ownership but not hold any seats on its board, according to the Post.
Executives at Inter.net confirmed the purchase but would not disclose financial terms and PSINet officials could not be reached for comment, the Post said.
The deal comes as PSINet searches for a buyer or strategic alliance to help dig itself out of financial trouble, the report said. The Ashburn, Va.-based firm lost $1.38 billion in the first three quarters of last year and has about $3.4 billion in debt, the report said.
The company used up about $1 billion in cash in the second and third quarters, and began October with $667 million in cash, the Post said. PSINet is scheduled to release its fourth-quarter earnings this month.
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