RealTime IT News

Covad Wishes Upon a BlueStar

Covad Communications + BlueStar Communications

 Covad (COVD) to acquire BlueStar Communications


   *  Amount:         $202 million


   *  Terms:            8 million shares

   *  Premium:        n/a


   *  Industry:        Speed/Bandwidth


   *  Scorecard:      C+


    SANTA CLARA, June 16--Covad Communications, which provides high-speed digital communications over traditional phone lines, said that it has agreed to buy BlueStar Communications, a broadband and Internet services provider for small and medium-sized businesses throughout the southeastern United States, in a share deal valued at around $202 million. Covad said it will buy BlueStar for eight million shares with up to five million additional shares to be issued if certain performance targets are met. BlueStar will withdraw its registration with the SEC for its planned initial public offering due to the deal, in which it had planned to raise as much as $189 million.