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
The European Commission has today decided to close the formal investigation procedure into the agreement between Bratislava Airport in Slovakia and Ryanair after concluding that the airport operator acted as a market economy investor and therefore no advantage has been granted to Ryanair.
more »
The coffee industry of Jamaica represents one the largest earners of foreign exchange, approximately US$30 million in 2008.
more »
On January 13, 2010, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Mauritius.
more »
The World Bank's International Development Association and the International Monetary Fund have agreed to support US$1.6 billion in debt relief for the Islamic Republic of Afghanistan.
more »
The Common Agricultural Policy plays a critical role in helping farmers to deliver environmental goods and services, provided that policies are targeted in the right way.
more »
Regional Policy Commissioner Paweł Samecki will meet Croatia's Prime Minister Jadranka Kosor and members of her government in Zagreb on 25-26 January to discuss the country's preparations for accession in the context of the EU cohesion policy.
more »
The World Bank Board of Directors today approved US$20 million for the Dominican Republic in support of the Municipal Development Project, which aims to improve the technical and financial capacity of local governments.
more »
The European Investment Bank (EIB) is lending EUR 400 million to Ford Romania SA for the expansion and refurbishment of the company’s existing car assembly plant located in Craiova in the South-West of Romania.
more »
The Agriculture Council of the European Union has examined ways to improve the functioning of the food supply chain with the ultimate aim of controlling the fluctuation in prices and ensuring a more equitative distribution of the added value throughout the chain.
more »
The European Commission has today approved an application from Lithuania for assistance under the Globalisation Adjustment Fund (EGF).
more »