McCleary "Perplexed" By Lack Of PSINet Response
Federal Filings via Dow Jones
FORM TYPE: BusWire
ISSUER: PSINET INC.
SYMBOL: PSIX
WASHINGTON--(BUSINESS WIRE)--Jan. 22, 1998--"USi and our
investors are perplexed by the lack of response by the PSINet Inc.
board of directors," explained USi Chairman and CEO Christopher
McCleary.
"With their stock performing this poorly, the PSINet board
should have a heightened sensitivity to carefully reviewing all
opportunities to enhance shareholder value."
USi recently submitted a formal request to the board of
directors of PSINet to delay a Special Shareholder Meeting scheduled for
Friday, Jan. 23, 1998. PSINet was seeking shareholder approval to issue
10 million additional common shares of PSIX to IXC Communications Inc.
in exchange for fiber capacity.
The postponement was requested by USi to allow USi to prepare the
necessary SEC filings to contact the shareholders of PSINet directly to
offer them $10 per share as an alternative.
PSINet, in a press release issued today, declined to consider
the USi proposal.
"It is one thing to decline our proposal," explained McCleary.
"But the fact that PSINet made no attempt to contact us and our
financial advisors, Friedman, Billings, Ramsey, and Co. Inc., to
arrange a meeting to discuss the details of our proposal is extremely
perplexing."
"How does the PSINet board know if USi would be prepared to
increase the offer if they refuse to contact us to arrange a meeting?"
McCleary further added. "It is a sad day for PSINet shareholders."
USinternetworking Inc., headquartered in Washington, is a
Delaware corporation formed to pursue the acquisition of private and
public companies engaged in the provision of Internetworking services in
the U.S.
McCleary, chairman and chief executive officer, was formerly
chairman and CEO of DIGEX Inc. until the completion of DIGEX's merger
into Intermedia Communications Inc. late in 1997.
CONTACT: USinternetworking Inc.
Christopher S. McCleary, chairman and CEO,
888/410-1123
www.usinternetworking.com |
