Since the deal with Chello is being talked about as a possible real deal, I went and looked up Chello's IPO information. Here it is:
CHELLO BROADBAND NV
BOEING AVENUE 101,1119 PE SCHIPHOL-RIJK
AMSTERDAM,THE NETHERLANDS
Phone:31207788200
chello.com
Company Vitals
1999 Revenue:$7,374,000
1999 Net Income (Loss): ($140,000,000)
Fiscal Year End: 12/31
Employees: 293
Incorporated In: NETHERLANDS
Industry: Internet Infrastructure
Offering Status
Current IPO Status: Postponed
Filing Date: 5/1/00
Exp. Pricing Date: Postponed
Proposed Symbol: CHLO
Exchange: NASDAQ
Form Filed: F-1
Share Type: ADRs
Est. Offering Amount:$368,664,500
Expected Price: $11.88 to $15.53
Est. Offering Expenses:*TBA*
Total Shares: 26,900,000
We are a leading international provider of high-speed internet services, commonly referred to as broadband internet services. We have rights to distribute our services to residential and business customers using caple television, fixed wireless and satellite infrastructure of local operators covering approximately 16.8 million homes in Europe, Australia, New Zealand and Chile. We currently provide our services through local operators in Austria, Belgium, France, The Netherlands, Norway, Sweden, Australia and New Zealand covering approximately 9.9 million homes. With respect to 2.2 million of these homes located in Australia and New Zealand, our agreement with our local operator is subject to the approval of its parents' shareholders who are not affiliated with us and the receipt of a waiver of some of the covenants under indentures to which our local operator is subject. We launched our services in March 1999 and at March 31, 2000, approximately 167,000 homes and 4,000 businesses subscribed to our services. We were voted best European consumer internet service provider, or ISP, at the European ISP awards in December 1999.
Use Proceeds
General corporate purposes, including marketing, brand and content development, technology, working capital, capital expenditures and investments in set-top computers and other infrastructure, and potential acquisitions, repayment of 55.0 million Euros in advances from UPC, as well as intercompany loans to UPC, UGC or their respective affiliates if we are so required under the circumstances described under "Related Party Transactions and Relationships -- UPC and UGC Indentures."
Competitors
Competition in the markets for consumer internet services and online content, our primary markets, is very intense, and we expect that competition will intensify in the future. To a lesser extent, we also compete on the business internet services market, where competition is equally intense. In the markets where we are already present, our most direct competitors are telecommunications companies, internet service providers and internet portals. In markets where we would like to introduce our services, we also face competition from other cable-based services in addition to the competitors.
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Here is some commentary:
MEGA MERGER BABY: Excite@Home in Chello talks By Peter Thal Larsen in London and William Lewis in New York Published: Last Updated: June 8 2000 07:05EST
Excite@Home, the US internet group, is discussing a merger of its international operations with Chello Broadband, the European high-speed internet operator, in a deal which would create one of the largest players in the European internet sector. Excite is thought to have approached Chello about the possibility of a combination and discussions are thought to be relatively advanced. However, people close the two companies warned that a deal, which depends on the approval of corporate shareholders on both sides, could still fall apart.
If successful, the deal would give Excite, which has built up a strong business in the US, complete access to a pan-European cable network for the first time. In the US the company, which is controlled by the telecom giant AT&T, has signed up around 1.5m cable subscribers to its high-speed internet service. It is also the fifth most popular destination on the world wide web, attracting 30m unique users in April, according to the measurement firm Media Metrix. A combination with Excite would open up new distribution channels for Chello's broadband internet service.
Excite has established operations in nine countries including the Netherlands, Germany, France and Japan, but has so far struggled to attract subscribers base. Meanwhile, Chello would benefit by exporting technology, software and other applications which have been developed by Excite in the United States. Chello could also draw on Excite's relationships with suppliers of online content. Roger Lynch, Chello's chief executive, worked as an adviser to Excite in his previous job as an investment banker at Morgan Stanley Dean Witter, and is still thought to have close links with the company.
Chello declined to comment on Wednesday night, although on Wednesday the company postponed its initial public offering for the second time in a week pending the outcome of what it called "ongoing strategic discussions". Chello, which is controlled by the cable operator United Pan-Europe Communications, has been in talks with Telewest, the UK operator, about an alliance which would give it a foothold in the United Kingdom. Liberty Media, the media group which is controlled by AT&T, recently acquired a 3.5 per cent stake in Chello. United Globalcom, UPC's parent company, and the software giant Microsoft also have stakes in the company.
An agreement between Excite and Chello would mark the latest stage in the consolidation between internet operators in Europe. Last month Terra, the Spanish internet service provider, merged with Lycos, the second-largest internet portal. And T-Online, the German ISP which is controlled by Deutsche Telekom, is currently in talks to buy Freeserve, the UK internet group. UPC declined to comment last night while Excite could not be reached for comment. |
