Completes Digex Acquisition
Tender offer tops necessary benchmark, Digex will become MCI subsidiary
Nov. 17, 2003 -- MCI said today that it had succeeded in
its tender offer for Digex Inc., which will now become a wholly-owned
subsidiary of the former WorldCom.
said that 19.11 million shares were tendered in response to its
revised $1 a share offer for Digex, representing 76.3 percent
of commons hares. That exceeded the 74.3 percent minimum set by
MCI, which says it "intends to complete the merger as soon
MCI owns a controlling stake in Digex, which wasn't included
in the MCI/WorldCom bankruptcy filing but placed itself for sale
late last year. MCI initially offered 80 cents a share,
and Lane Berry, the investment advisers for Digex' board, recommended
that the company accept.
But several major shareholders, David
J. Greene & Company LLC and JMB Capital Partners, held out for
a higher offer. On Oct. 24 MCI raised its bid to $1 and both Green
and JMB agreed to tender their stakes, which amounted to 7.1 million
Digex is a leading provider
of enterprise hosting services. Digex customers, from Fortune
1000 companies to leading Internet-based businesses, leverage
Digex's trusted infrastructure and advanced services to successfully
deploy business-critical and mission-critical Web sites, enterprise
applications and Web Services on the Internet.