Vulcan Ventures Owns Approximately 6% of Allegiance Telecom, that helps shed some light on today's announcement..Paul Allen is building his empire and our empire..
biz.yahoo.com
DALLAS, Nov. 1 /PRNewswire/ -- Allegiance Telecom, Inc. (Nasdaq: ALGX - news) today announced that Vulcan
Ventures, Inc., the investment organization of Paul G. Allen, has exercised its option to purchase 2.5 million additional
Allegiance Telecom shares, at $56 per share from existing private equity investors and certain other investors. In
September 1999, Vulcan Ventures purchased 1.5 million shares of Allegiance common stock from Allegiance's existing
private equity investors and certain other investors at $50 per share. With this exercise, Vulcan Ventures will own
approximately 6% of Allegiance Telecom. As part of the deal, Vulcan will also gain another seat on Allegiance's board
of directors, making it a total of two. The option to purchase the 2.5 million remaining shares under the agreement has
expired.
Allegiance Telecom is a competitive local exchange carrier (CLEC) based in Dallas, Texas. Allegiance provides
businesses with local, long distance, high-speed data and Internet services, including digital subscriber line (DSL)
services. The Company is currently operational in 18 markets and has plans to offer its ``one-stop shop' approach in 24
major metropolitan areas in the U.S. by mid-year 2000.
Vulcan Ventures has investments in over 100 companies, which include many of the leaders in the Internet content and
e-commerce sectors.
``We are delighted that Paul Allen and his team have made an even stronger commitment to our company,' said Royce J.
Holland, chairman and chief executive officer of Allegiance Telecom. ``This is a tremendous opportunity for Allegiance
and should accelerate our rollout of Internet content and e-commerce services to existing and future customers.'
About Vulcan Ventures
Vulcan Ventures, Inc. of Bellevue, Washington, was founded by Paul G. Allen in 1986. Through Vulcan Ventures, Allen
invests in companies that offer products, services or technologies that fit his wired world strategy. William D. Savoy is
president of Vulcan Ventures and represents Allen in his professional and personal financial transactions as well as
managing the Vulcan analysts who investigate the secure investment opportunities. Allen remains chairman of Vulcan.
Vulcan Ventures' web address is: www.paulallen.com .
About Allegiance Telecom
Based in Dallas, Texas, Allegiance Telecom is a facilities-based competitive local exchange carrier that offers businesses
a complete package of telecommunications services, including local, long distance, international calling, high-speed data
transmission and Internet services. The Company is targeting 24 major metropolitan areas in the U.S. with its ``one-stop
shopping' approach. Allegiance is currently operational in 18 markets, including Atlanta, Baltimore, Boston, Chicago,
Dallas, Fort Worth, Houston, Long Island, Los Angeles, New York, Northern New Jersey, Oakland, Orange County,
Philadelphia, San Diego, San Francisco, San Jose and Washington, D.C. The Company's web address is:
www.allegiancetele.com . Allegiance's common stock is traded on the Nasdaq National Market under the symbol
ALGX.
SOURCE: Allegiance Telecom |
