UK - COLT Telecom To
Raise $800 Million Capital
March 01, 1999: 1:56 p.m. ET
LONDON, ENGLAND (NB) -- By Sylvia Dennis,
Newsbytes. City of London Telecom (COLT) has
come a long way in the last few years, moving away
from its regional (London) origins and turning into a
true national (and European) telecommunications
carrier. Now the firm wants to go further and has
announced plans to raise 500 million pounds ($800
million) in new capital.
According to company officials, the bulk of the cash
raised will be used to expand its national and
international infrastructure, as well as expanding its
Internet services. Perhaps most interesting of all,
however, is the fact the firm wants to expand its local
presence in Europe.
Plans call for COLT to raise around 200 million
pounds ($320 million) through the issue of new shares,
with the remaining 300 million pounds ($480 million)
being raised through the issue of senior convertible
notes denominated in euros.
Plans call for the international expansion of the firm's
network to be concentrated in Germany, where the
firm says that its pan-Germany network for linking its
local network operations is now well under way.
Assuming the cash can be raised, the carrier says that
its German national network could be completed by
the beginning of next year.
A significant slice of cash will be used to expand the
COLT Internet service, which was launched in the UK
two years ago. Plans call for the service to be
expanded into France and Germany, allowing the firm
to offer expanded Internet hosting and housing
facilities, as well as establishing Internet points of
presence.
Jim Hynes, COLT's chairman, said that, with
established local operations in 12 cities and plans for
an additional eight to 10 cities this year and up to a
further four next year, the time is now right for the
company to invest in infrastructure to link these local
networks.
"Our objective is to provide customers with an
integrated broadband network across Europe capable
of meeting their growing demands for data
transmission, Internet services, and other high
bandwidth applications," he said.
According to Paul Chisholm, COLT's chief
executive officer (CEO), the firm has ambitious plans
for its Internet operations. He said that, having
developed its Internet expertise over the past two
years, the firm is now ready to build on that
foundation.
"COLT's aim is to be a leader in network focused
Internet services for business customers across
Europe," he said.
Newsbytes notes that COLT currently has
operations in London, Paris, Frankfurt, Hamburg,
Munich, Berlin, Zurich, Brussels, Amsterdam,
Dusseldorf, Madrid, and Milan. Plans call for eight to
ten new cities to be operation later this year, including
Barcelona, Cologne, Geneva, Lyon, Marseilles,
Rotterdam, Stuttgart and Vienna.
COLT's Web site is at
colt-telecom.com . |
