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Technology Stocks : COLT Telecom (COLT) -- Ignore unavailable to you. Want to Upgrade?

To: Avariceman who wrote (86)	3/2/1999 8:15:00 AM
From: Avariceman	Read Replies (1) \| Respond to of 95

UK - COLT Telecom To Raise $800 Million Capital March 01, 1999: 1:56 p.m. ET LONDON, ENGLAND (NB) -- By Sylvia Dennis, Newsbytes. City of London Telecom (COLT) has come a long way in the last few years, moving away from its regional (London) origins and turning into a true national (and European) telecommunications carrier. Now the firm wants to go further and has announced plans to raise 500 million pounds ($800 million) in new capital. According to company officials, the bulk of the cash raised will be used to expand its national and international infrastructure, as well as expanding its Internet services. Perhaps most interesting of all, however, is the fact the firm wants to expand its local presence in Europe. Plans call for COLT to raise around 200 million pounds ($320 million) through the issue of new shares, with the remaining 300 million pounds ($480 million) being raised through the issue of senior convertible notes denominated in euros. Plans call for the international expansion of the firm's network to be concentrated in Germany, where the firm says that its pan-Germany network for linking its local network operations is now well under way. Assuming the cash can be raised, the carrier says that its German national network could be completed by the beginning of next year. A significant slice of cash will be used to expand the COLT Internet service, which was launched in the UK two years ago. Plans call for the service to be expanded into France and Germany, allowing the firm to offer expanded Internet hosting and housing facilities, as well as establishing Internet points of presence. Jim Hynes, COLT's chairman, said that, with established local operations in 12 cities and plans for an additional eight to 10 cities this year and up to a further four next year, the time is now right for the company to invest in infrastructure to link these local networks. "Our objective is to provide customers with an integrated broadband network across Europe capable of meeting their growing demands for data transmission, Internet services, and other high bandwidth applications," he said. According to Paul Chisholm, COLT's chief executive officer (CEO), the firm has ambitious plans for its Internet operations. He said that, having developed its Internet expertise over the past two years, the firm is now ready to build on that foundation. "COLT's aim is to be a leader in network focused Internet services for business customers across Europe," he said. Newsbytes notes that COLT currently has operations in London, Paris, Frankfurt, Hamburg, Munich, Berlin, Zurich, Brussels, Amsterdam, Dusseldorf, Madrid, and Milan. Plans call for eight to ten new cities to be operation later this year, including Barcelona, Cologne, Geneva, Lyon, Marseilles, Rotterdam, Stuttgart and Vienna. COLT's Web site is at colt-telecom.com .