RCN abandons bid for FiberNet Telecom

After what could have become a bidding war, competitive cable and business service provider RCN decided to withdraw its bid to acquire FiberNet Telecom for $96 million. RCN's June 16 offer was the latest move in an ongoing acquisition path the company has taken in recent years by buying ConEd Networks and more recently wholesaler NEON networks. RCN's offer came after FiberNet reached a deal to be acquired by Colorado-based Zayo Networks. This agreement, which was set to close in the third quarter, however, would only go through if a better offer was not made.

FiberNet now plans to proceed with its sale to Zayo Group for $11.45 per share in cash under the previous merger agreement, according to industry reports. The Zayo Group acquisition is expected to be completed in Q3 2009, upon meeting stockholder approval, and FCC and state regulatory approvals.

For more:
- Multichannel News has this report

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