Does this mean McCleary has taken his toys and gone home?
USinternetworking Will Not Pursue PSINet
ANNAPOLIS, Md.--(BUSINESS WIRE)--Feb. 20, 1998-- USinternetworking Inc. (USi) Friday announced that it will no longer seek to pursue a shareholder enhancement plan with PSINet (Nasdaq: PSIX).
"After reviewing the onerous anti-takeover provisions enacted by the board and the refusal by PSINet management to meet with USi and our investors, we had no alternative," explained Robert Carden, a spokesman for USi.
On Jan. 20, 1998, USi submitted a letter to each of the board members of PSINet (attached to this release) requesting a delay in the issuance of 10 million new common shares to enable USi and its investor group to offer the shareholders of PSINet an option to tender their shares for cash as an alternative to management's operating plan.
The PSINet board refused to meet with USi and proceeded to enter into a fiber capacity for equity transaction with IXC Communications Inc. (Nasdaq: IIXC), diluting the existing shareholder base by 20%.
"The Street has voted as to where the value of this transaction lies. IXC Communications Inc. is up 41% since our request and PSINet remains flat, punishing loyal shareholders," commented Christopher McCleary, USi chairman and chief executive officer.
USinternetworking is headquartered in Annapolis and was founded in January, 1998 by former DIGEX Chairman and CEO Christopher McCleary.
USi seeks to provide all types of business customers with premium and comprehensive IP-based Internetworking solutions including reliable access, server management, network security, extranet interfaces, and commerce-enabled World Wide Web presence. Company news and product/service information are available at www.usinternetworking.com |
