Monday September 14, 4:25 am Eastern Time
Qwest to buy Icon CMT for $185 mln - WSJ
already filed to zcp
NEW YORK, Sept 14 (Reuters) - Qwest Communications International Inc. plans Tuesday to
announce that it has agreed to buy Internet service provider Icon CMT Corp. (Nasdaq:ICMT - news) in a stock deal Qwest
values at about $185 million, the Wall Street Journal reported Monday.
The price represents a 60 percent premium over Icon's market value as of Friday, the report said.
Qwest, a Denver-based telecommunications company, is building a nationwide network based on Internet technology,
according to the article.
The acquisition of Icon would allow Qwest to offer a broader menu of Internet-related services to large corporate clients,
the report said. Icon, based in Weehawken, N.J., sells Internet access, Web hosting, and network-management services to
large businesses, the report added.
The acquisition also would allow Qwest to leverage its fiber-optic network, which is robust but lacks the heavy traffic
volume of rivals such as MCI Communications Corp. and AT&T Corp., the report said.
According to people familiar with the negotiations, Qwest is offering $12 in stock for each share of Icon, the report said.
Regards
Neil |
