NORTEL (NORTHERN TELECOM) OFFERS TO BUY BROADBAND NETWORKS INC. -- A LEADER IN FIXED BROADBAND WIRELESS ACCESS COMMUNICATIONS
TORONTO, Nov. 2 /PRNewswire/ - In order to strengthen its position in the emerging fixed broadband wireless market, Northern Telecom Limited today announced that it has made an offer to purchase all of the issued and outstanding common shares of Broadband Networks Inc. (BNI) on a fully diluted basis. BNI is a leader in the design, manufacture and deployment of fixed broadband wireless communications networks.
BNI, a start-up company, was formed in 1994 to capitalize on opportunities created by deregulation and competition in the telecommunications industry, the demand for high capacity telecommunication services, and the ability of advanced wireless technology to provide a local access solution. BNI's objective is to become a global leader in the design, manufacture and deployment of point-to-multipoint broadband fixed wireless communications networks.
BNI's innovative technology will allow service providers to deliver high quality voice, video and Internet service, and high speed data to their business customers across a wide variety of licensed frequencies. The company has approximately 240 employees, with offices in Winnipeg, Manitoba, and Dallas, Texas.
Matt Desch, president, Wireless Networks, Nortel, said ''The offer to purchase BNI has been made to establish a leadership position in fixed broadband wireless access... there is a strong emerging demand for end-to-end broadband network solutions utilizing both Nortel's and BNI's technologies for small and medium-sized businesses and, eventually, residential markets.''
The offer is made on the basis of Cdn$ 6.0278 in cash and 0.0856 of a Nortel common share for each common share of BNI, subject to certain adjustments. The aggregate purchase price is expected to be approximately Cdn$ 586 million. In connection with the offer, certain shareholders have agreed to tender their 24,158,466 BNI common shares to Nortel (representing approximately 81 percent of the 29,678,293 issued and outstanding common shares of BNI).
The closing is subject to certain conditions, including compliance with the requirements of BNI's existing unanimous shareholders' agreement, the requirement that 100 percent of the outstanding common shares of BNI on a fully diluted basis are tendered and not withdrawn, and certain regulatory approvals. The offer was mailed today and is open for acceptance until 4:00 p.m. EST on January 5, 1998, unless extended or withdrawn.
Nortel works with customers in more than 150 countries to design, build and integrate their communications products and advanced digital networks. Customers include public and private institutions; Internet service providers; local, long-distance, cellular mobile and PCS communications companies; cable television companies; and utilities.
Nortel had 1996 revenues of $US 12.8 billion and has approximately 70,000 employees worldwide. |
