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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (4484)	2/23/2000 8:17:00 AM
From: J Fieb	Respond to of 15615

Global Crossing To Buy Web Provider By MICHAEL WHITE .c The Associated Press BEVERLY HILLS, Calif. (AP) - Global Crossing Ltd. is paying $3.4 billion in stock for IXnet Inc. and its parent, IPC Communications, in a deal that will link Global Crossing's telecommunications network with intranet and desktop trading operations. IXnet creates intranets that 600 financial services companies use to communicate and provide news, market data and video to clients and employees. IPC creates desktop trading systems. ``IXnet is a great strategic fit for us,' said Bob Annunziata, Global Crossing's chief executive officer. ``We will now move to the next level beyond providing building-to-building connectivity in major cities - providing desktop-to-desktop connectivity for multinational corporations worldwide.' Global Crossing sells space on its growing fiber optic cable network for Internet and data transmissions and provides Internet hosting services. The company owns undersea and land cables connecting the United States with Asia and Europe. It is based in Hamilton, Bermuda, but has offices in Beverly Hills. Under the deal announced Tuesday, 1.184 Global Crossing shares will be exchanged for each IXnet share not owned by IPC. Global Crossing will give 5.417 of its shares for each outstanding share of IPC. Based on Tuesday's price for Global Crossing shares, the deal would be worth $3.4 billion. The deal will reduce IXnet's operating expenses because it will provide services over Global Crossing's fiber network rather than through costly leased telephone lines. It also will expand Global Crossing's customer relationships in the financial community by adding Citigroup, Goldman Sachs, Merrill Lynch and others. The company, which has spent heavily to expand its network, reported on Friday that it lost $199.7 million, or 29 cents per share, during 1999's fourth quarter, compared with a loss of $56 million, or 12 cents per share, during the final quarter of 1998. AP-NY-02-23-00 0011EST