Nortel Networks + Alteon
WebSystems, NTL + Virgin.net unit
Nortel Networks (NT) acquires Alteon WebSystems
(ATON) |
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Amount: $7.8
billion |
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Terms:
100% stock |
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Premium: n/a |
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Industry:
Speed/Bandwidth |
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Scorecard: B- |
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BOSTON, July 28–Nortel Networks announced a
definitive agreement to acquire San Jose, Calif.-based Alteon
WebSystems , a leader in content aware switching,
positioning Nortel Networks as
a leader in delivering high-performance Internet data centers. Nortel will
pay an estimated US $7.8 billion in its common shares or a fixed exchange
ratio of 1.83148 Nortel common shares for each share of Alteon WebSystems common stock. The
transaction is expected to close in the fourth quarter of 2000.
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NTL (NTLI) to acquire Virgin.net’s ISP
arm |
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Amount: $362
million |
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Terms:
cash and stock |
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Premium: n/a |
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Industry: ISPs/Access
providers |
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Scorecard: B+ |
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LONDON, July 28–British firms NTL Inc.
and Virgin Group agreed to split up their joint venture, Virgin.net, in a deal which will see NTL
take over the unit’s Internet Service Provider (ISP) business. Cable
operator NTL will pay cash and shares for
its acquisition of 100% of Virgin.net’s ISP arm, in a deal worth $362
million, while Virgin, chaired by UK
entrepreneur Richard Branson, will assume 100% ownership of Virgin.net’s
content and commerce business. NTL said the acquisition would make it the
UK’s third largest ISP, behind Freeserve and AOL.
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