Covad Wishes Upon a BlueStar

 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.