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Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: LiPolymer who wrote (20663)	10/4/2000 3:53:12 PM
From: Sir Auric Goldfinger	Read Replies (2) \| Respond to of 21342

Paul Allen gives up on broadband: "InterNAP Falls as Paul Allen's Vulcan Files to Sell (Update1) (Adds comment from Vulcan, InterNAP officials in sixth to eighth paragraphs.) Seattle, Oct. 4 (Bloomberg) -- Shares of InterNAP Network Services Corp., which helps businesses transmit data over the Internet, fell as much 32 percent after Paul Allen's Vulcan Ventures Inc. filed to sell 1 million shares. The shares bounced back in late trading, falling just 1.81 to 23. Earlier, they fell as low as 16.94. Vulcan Ventures, the investment firm owned by Microsoft Corp. co-founder Allen, owned about 9.47 million InterNAP shares in February, according to a proxy filed at the Securities and Exchange Commission. The Seattle-based company, which first sold shares to the public a year ago, builds what it calls private network access points that connect to all the major telecommunications networks carrying Internet traffic. InterNAP sells its service to companies such as Amazon.com Inc., the No. 1 Internet retailer, that want to ensure data is delivered securely and quickly. ``You are nervous when you see insiders selling,'' said Merrill Lynch & Co. analyst Thomas Watts. ``Some of (the) early investors have substantial gains'' and want to diversify their investments. InterNAP's stock has more than doubled since its Sept. 29, 1999, public sale at $20 each. The company split its shares 2-for-1 this year. ``We routinely divest ourselves of portions of shares in public companies for diversification of the portfolio,'' said Vulcan spokeswoman Susan Pierson Brown. InterNAP Chief Executive Tony Naughtin said Vulcan Ventures was an early venture investor in the company. ``Based at the current valuation, their return is anywhere from 60 to 100 times over their original investment,'' said Naughtin. ``We can say (the sale) has nothing to do with the company's fundamentals. It has to do with the extremely high multiple they made on the investment.'' --Aimee Picchi in New York at (212) 318 2300 or apicchi@bloomberg.net through the Washington newsroom (202) 624- 1820 /sg/dfr