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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: JAMES P. McVEIGH who wrote (1847)	1/22/1998 4:48:00 PM
From: Ken Turetzky	Read Replies (1) \| Respond to of 5650

Analysts now expect $12-15 bid =PSINet -2: Ex-Digex CEO Says He's Considering Higher Bid Dow Jones News Service via Dow Jones By Joelle Tessler NEW YORK (Dow Jones)--Analysts expect a higher offer for PSINet Inc. (PSIX) from the entity that has already proposed to pay $10 a share to acquire at least 51% of the Internet service provider. Analysts said they believe the new offer could come in at $12 to $15 a share. PSINet earlier Thursday said the original proposal "was not of interest," but company officials could not be reached immediately to comment on the rumored higher offer. The proposal to tender for PSINet came Wednesday from a company called USinternetworking Inc. The company is run by Christopher McCleary, the former chief executive of Digex Inc., a competing Internet service provider that was bought by Intermedia Communications Inc. (ICIX) last year. McCleary, who recently stepped down as president and chief executive of Digex, made his first proposal in a letter to PSINet's board. McCleary told Dow Jones Thursday that he is evaluating making a higher offer if PSINet's board agrees to postpone a special shareholders' meeting Friday at which PSINet investors are to vote on the company's planned alliance with IXC Communications Inc. (IIXC). The deal has already been approved by PSINet's board. McCleary said he believes the alliance would be "highly dilutive" to PSINet. But PSINet officials said they expect the agreement to receive shareholder approval and stressed that they believe the company's investors are very supportive of the deal. McCleary, who said he formed USinternetworking "to seek acquisitions and do roll-ups in the internetworking industry," added that he is a shareholder in PSINet. McCleary said he owns less than 5% of the company, but that his stake is worth a dollar amount in "the seven figures." (MORE) DOW JONES NEWS 01-22-98