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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: mact who wrote (9775)	11/6/2000 12:35:17 PM
From: James Fulop	Read Replies (2) \| Respond to of 12623

>>does this mean cien gets paid afterall?<< Hard to say. Here is another article about the purchase: >>Dynegy to reveal Iaxis deal By Joia Shillingford Published: November 5 2000 21:21GMT \| Last Updated: November 6 2000 11:07GMT Iaxis, the UK telecoms company that went into administration in September, is on Monday expected to be acquired by Dynegy as part of the US energy company's expansion into the European telecoms market. The deal will also give Dynegy access to a chain of "internet hotels", which house customers' internet servers and high-speed telecoms links. Dynegy is expected to invest several hundred million dollars in completing Iaxis' pan-European fibre-optic network and to make some payments to creditors, though they are unlikely to be paid in full. The deal will be done through its telecoms arm, Dynegy Connect, which was formed by the $188m acquisition in September of Extant, a privately-held US communications group. Telstra, Australia's largest telecoms company, has a 20 per cent stake in Dynegy Connect. Dynegy's telecoms business already has a US fibre-optic network covering more than 28 US cities. The benefits of the deal for Dynegy are that it is a cost-efficient way of getting a pan-European fibre network which should be able to start operating within a few months, instead of up to 18 for building a new network. As part of the deal, Dynegy will have the opportunity to take over Iaxis' 15 per cent stake in Digiplex, a privately-held internet hotel company set up by Geir Ramleth, the founder of Nasdaq-listed Genuity. Iaxis, which was lossmaking, had been planning a £1bn flotation this year, but called in Steven Pearson of PriceWaterhouseCoopers as administrator after investors refused further funding. When the company went into administration it was thought to have debts of $200m (£138m), but these are now believed to be closer to $300m. Creditors include Ciena and Nortel, North American telecoms equipment providers, owed $28.2m and $11.2m respectively. If the deal does not go unconditional soon, creditors are likely to receive less than 5 cents in the dollar. The administrators have received more than 27 expressions of interest in an auction for the company. There was also an approach from Deutsche Telekom, which last year signed a $50m contract to lease capacity from Iaxis. Iaxis' first major backing came from a group of investors led by Wynnchurch Capital, a Chicago-based private equity firm. Other investors were Gilbert Global Equity Partners, Larkfield, GE Capital and Donaldson Lufkin & Jenrette. In March, a consortium led by Bain Capital of Boston invested $66m for convertible preferred shares in Iaxis.<< news.ft.com It would also be interesting to find out what Dynegy did when it bought Extant as Extant also was behind in payments to Tellium at the time (per the SEC docs filed for Tellium's IPO) PS This company came out with a report on CIEN today...(free but registration is required..) epoch.com