BCE might nibble at 360networks fibre, Monty says; not interested in company
TORONTO, Jun 28, 2001 (The Canadian Press via COMTEX) -- BCE Inc. might be interested in buying fibre-optic capacity from 360networks Inc., but not the company as a whole, BCE chairman Jean Monty said Thursday.
Monty commented on 360networks a day after the Vancouver-based company announced it was laying off 800 people, or 45 per cent of its workforce, because of a shortage of operating cash.
BCE's Teleglobe subsidiary competes to some extent with 360networks since both companies have spent billions to build high-speed fibre-optic networks.
"Obviously, if there are assets available at a nice price compared to what we'd have to pay to build the capability, I'm not opposed to it," Monty said after addressing a conference on electronic commerce.
"But that's far from saying we're going to put $2 billion to either buy assets or 360 itself. That's out of the question," he said.
"And we're not talking about hundreds of millions of dollars either. This is really pieces here and there that we'd be interested in.".
Shares of 360networks closed at 31 cents on the Toronto Stock Exchange, unchanged for the day but less than one-hundredth its 52-week high of $35.90. Thursday's price indicates a market value of $230 million.
The company's stock fell below $1 for the first time three weeks ago after Moody's Investors Service downgraded 360networks.
Last week, the Vancouver-based company failed to make an interest payment of $10.9 million US.
There is widespread speculation that 360networks will seek court protection from its creditors under U.S. and Canadian bankruptcy laws. That would allow the company, which owes $2.8 billion US to bondholders, to continue operations.
A major 360networks shareholder and creditor, privately held Worldwide Fibre Holdings Inc., said Wednesday it had assumed responsibility for buying back 360networks shares from Greg Maffei, the company's chief executive officer, if he chooses to exercise his right to sell them.
Worldwide Fibre said its obligation to repurchase covers 9.8 million multiple voting shares and 52.1 million subordinate voting shares held by Maffei, former chief financial officer of Microsoft Corp.
Worldwide Fibre is controlled by the Edmonton-based Lede brothers, who also own the Ledcor construction company.
Excluding Maffei's shares, Worldwide Fibre owns multiple and subordinate shares that accounts for 64 per cent of 360networks voting shares. |
