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 financial and economic crisis has shown that reckless behaviour of banks and other financial institutions can have serious and costly consequences for Europe's economy and its people.
more »
Local services that create jobs and improve energy efficiency received a boost Thursday (2 September) when MEPs on the Industry, Research and Energy Committee approved plans for more investment.
more »
The European Commission approved the first financing decisions under the EUR 264 million 2010 allocation for the so-called Vulnerability FLEX mechanism to help the most vulnerable African, Caribbean and Pacific countries cope with the impact of the global financial crisis and economic downturn.
more »
The European Commission has today updated the list of airlines banned in the European Union to impose an operating ban on one air carrier from Ghana and to place operating restrictions on another air carrier from that country.
more »
The European Commission today approved an application from Denmark for assistance under the European Globalisation adjustment Fund (EGF).
more »
Algirdas Šemeta, EU Commissioner for Taxation, Customs Union, Anti-Fraud and Audit, will open tomorrow an international conference at the Shanghai World Expo 2010 on building bridges to facilitate trade between China and the EU.
more »
Moldova is set to receive an EU grant of up to €90 million to help it through the financial crisis, following a vote at Parliament's Committee on International Trade on Monday.
more »
Important notice: since May 2010 business surveys data are classified in accordance with an updated version of the Nomenclature of Economic Activities (NACE rev. 2) causing a potential break in series at this date.
more »
75% of Europeans think that stronger coordination of economic and financial policies among EU Member States would be effective in fighting the economic crisis, according to the Spring 2010 Eurobarometer, the bi-annual opinion poll organised by the EU.
more »
The European Commission has extended until the end of the year the liquidity support scheme for banks in Slovenia.
more »