Jul 3, 2001 : WorldCom and Intermedia Complete Merger
📅 - International telecommunications company WorldCom Inc., after months spent making arrangements, completed its merger with Intermedia Communications Inc. on the weekend, acquiring the controlling stake in Web hosting firm Digex that it wanted all along.
``The closing of the Intermedia merger finalizes our acquisition of a controlling-interest in Digex, the industry's leading web-hosting provider,'' said Bernard J. Ebbers, president and chief executive officer of WorldCom. ``Now, we have the freedom to fully utilize Digex's unique assets to fuel our web hosting expansion by providing a comprehensive portfolio of mission critical hosting products and services for businesses of all sizes.''
As a result of the merger, each share of Intermedia common stock was converted into the right to receive one share of WorldCom group stock and 1/25 of a share of MCI group stock.
Holders of each of the series of Intermedia preferred stock, other than Intermedia series B preferred stock, are entitled to receive one share of a class of WorldCom preferred stock for each share of Intermedia preferred stock they own. The new WorldCom preferred stock has terms that are substantially similar to the terms of the Intermedia preferred stock except as described in the proxy statement/prospectus dated May 14, 2001. Shares of Intermedia series B preferred stock will remain outstanding as preferred stock of Intermedia following the merger. In accordance with the Digex Delaware Stockholders Litigation settlement, WorldCom contributed 9,896,833 shares of freely tradable WorldCom group stock and 395,873 shares of freely tradable MCI group stock ($165 million of securities based on the prescribed pricing formula) to a settlement fund to be distributed to Digex shareholders of record on September 1, 2000 and June 29, 2001.
``The closing of the Intermedia merger finalizes our acquisition of a controlling-interest in Digex, the industry's leading web-hosting provider,'' said Bernard J. Ebbers, president and chief executive officer of WorldCom. ``Now, we have the freedom to fully utilize Digex's unique assets to fuel our web hosting expansion by providing a comprehensive portfolio of mission critical hosting products and services for businesses of all sizes.''
As a result of the merger, each share of Intermedia common stock was converted into the right to receive one share of WorldCom group stock and 1/25 of a share of MCI group stock.
Holders of each of the series of Intermedia preferred stock, other than Intermedia series B preferred stock, are entitled to receive one share of a class of WorldCom preferred stock for each share of Intermedia preferred stock they own. The new WorldCom preferred stock has terms that are substantially similar to the terms of the Intermedia preferred stock except as described in the proxy statement/prospectus dated May 14, 2001. Shares of Intermedia series B preferred stock will remain outstanding as preferred stock of Intermedia following the merger. In accordance with the Digex Delaware Stockholders Litigation settlement, WorldCom contributed 9,896,833 shares of freely tradable WorldCom group stock and 395,873 shares of freely tradable MCI group stock ($165 million of securities based on the prescribed pricing formula) to a settlement fund to be distributed to Digex shareholders of record on September 1, 2000 and June 29, 2001.
Reads: 1824 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/worldcom703.cfm
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