Shares of Internet service provider Splitrock Services Inc. jumped nearly 22 percent today on news it will be acquired by phone company McLeodUSA Inc for about $1.8 billion.
Published:
10 January 2000 y., Monday
McLeodUSA is a competitive local-exchange carrier based in Cedar Rapids, Iowa, going after Baby Bell customers. It provides phone directories, local and long-distance service, data, voice mail, paging and Internet access in 21 Midwestern and Rocky Mountain states.
The Woodlands-based Splitrock provides Internet access and Web hosting to phone companies, Internet service providers and businesses. In the nine months ending Sept. 30, the company had a net loss of $77.4 million on revenue of $57.9 million.
McLeodUSA president Stephen C. Gray said the transaction will accelerate by 18 to 36 months the company's plans to deliver an array of data. The acquisition also would give McLeodUSA access to a new long-distance network being built by Level 3 Communications Inc., of Omaha, Neb.
Under the terms of the deal, Splitrock shareholders will receive 0.5347 share of newly issued McLeodUSA common stock for each Splitrock share. The deal also includes assumption of about $350 million in debt.
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
An International Monetary Fund (IMF) mission led by Mr. Hunter Monroe of the IMF’s Western Hemisphere Department visited Dominica during January 18-28 for the annual Article IV discussions on economic developments and macroeconomic policies.
more »
Experts in agriculture and government authorities coincided in requesting new management mechanisms and market regulation to protect the farming sector from the price crisis and enable generational changeover in rural areas at the European Congress of Young Farmers, organised by the ASAJA-Seville agricultural organisation.
more »
Immediate action is required to solve Europe's skills deficiencies and give Europeans a better chance of labour market success in the future, says an independent expert report published by the European Commission today.
more »
The European Investment Bank (EIB) is lending EUR 15.5 million to upgrade water supply and wastewater treatment in the City of Mykolayiv (southern Ukraine) and EUR 100 million to finance small and medium-sized investments in the areas of SMEs, energy efficiency and the environment in Ukraine.
more »
The European Commission can confirm that on 20 January 2010 Commission officials carried out targeted inspections at the premises of producers of Flexible Alternating Current Transmission Systems (FACTS).
more »
The European Commission has authorised today under the State aid rules a Lithuanian scheme worth LTL 10 million (approximately EUR 2.9 million) aimed at supporting farmers who encounter difficulties as a result of the current economic crisis.
more »
The effects of the global food, fuel and economic crisis would be felt by Africa’s people for some time yet and it was important to persist with efforts to protect the most vulnerable while laying the foundations for future productivity and growth, World Bank Group President Robert B. Zoellick said Tuesday.
more »
Mongolia’s herders have learnt a hard lesson this winter; a lesson that can perhaps be applied to managing Mongolia’s economy.
more »
DnB NORD Bankas, the leader of the country’s in investment products market, raises initial margin ratio for repurchase deals for most actively traded Lithuanian and Estionian shares.
more »
With over 23 million unemployed in the Europe Union and the jobless figure having risen in every member state since last year, how Europe is coping with the crisis and the effect on pension systems were discussed on Thursday 28 January.
more »