GTE in $616m bid for internet veteran BBN
Telecoms firm aims to enter enhanced Net services market through acquisition of loss-making ISP
Telephone company GTE has revealed plans to acquire one of the oldest internet service providers, BBN, in a deal worth $616 million.
The takeover ? announced on the same day that BBN reported a net loss of $12.2 million for its third quarter, ended 31 March ? is subject to approval by the US government.
GTE president Kent Foster said: ?GTE will jump-start its entry into the enhanced internet services market for large businesses through the acquisition of BBN.?
GTE will pay $29 per share to acquire all BBN outstanding common stock after gaining approval for the purchase. Remaining BBN shares not owned by GTE will be converted to cash. BBN helped built Arpanet, the predecessor to the internet, and operates networking projects on behalf of the US government.
The deal puts an end to discussions between BBN and AT&T, a minority shareholder in the ISP, about the possibility of an acquisition. The two companies are now involved in talks about disputes over their joint internet services agreement.
- AT&T has announced the departure of three senior executives from its wireless business unit. President and CEO Steve Hooper, vice chairman Wayne Perry, and vice president Gerry Salemme are leaving to set up Onecomm. The wireless business unit was founded on the acquisition of McCraw Cellular three years ago.