(Source: PRNewswire)
NEW YORK, July 9 /PRNewswire-FirstCall/ -- FiberNet Telecom Group, Inc. (Nasdaq: FTGX) ("FiberNet") today announced that RCN Corporation withdrew its proposal to acquire FiberNet for $12.50 per share of FiberNet common stock. Consequently, pursuant to the Agreement and Plan of Merger, dated as of May 28, 2009 (the "Merger Agreement"), among FiberNet, Zayo Group, LLC ("Zayo Group") and Zayo Merger Sub, a wholly-owned subsidiary of Zayo Group, RCN Corporation is no longer an "Excluded Party" under the terms of the Merger Agreement. FiberNet continues to proceed with its sale to Zayo Group for $11.45 per share in cash under the Merger Agreement.
Pursuant to the terms of the Merger Agreement, the holder of each share of FiberNet common stock issued and outstanding immediately prior to the effective time of the merger will be entitled to receive $11.45 per share in cash (subject to adjustment under certain conditions). The closing of this transaction is subject to the approval of FiberNet's stockholders at a special meeting, FCC and state regulatory approvals, and customary conditions. The transaction is not subject to any financing condition. The transaction is expected to be completed during the third quarter of 2009.
About FiberNet
Celebrating its 10th anniversary, FiberNet owns and operates integrated colocation facilities and diverse transport routes in the gateway markets of New York/New Jersey, Los Angeles, Chicago and Miami, designed to provide comprehensive broadband interconnectivity enabling the exchange of traffic over multiple networks. FiberNet's customized connectivity infrastructure provides an advanced, high bandwidth, fiber-optic solution to support the demand for network capacity and to facilitate the interconnection of multiple carriers' and customers' networks. For additional information about FiberNet, visit FiberNet's website at www.ftgx.com.
About Zayo Group
Based in Louisville, Colo., Zayo Group (www.zayo.com) is a regional provider of telecom services -- including bandwidth, voice and managed services -- to carrier, enterprise, SME and government customers. Zayo Group currently provides its service over a fiber network that spans 129 markets in 23 states. Zayo Group consists of three complementary business units: Zayo Bandwidth, Zayo Managed Services and Onvoy Voice Services.
Important Notice
FiberNet plans to file with the Securities and Exchange Commission and mail to its stockholders a Proxy Statement in connection with the transaction. The Proxy Statement will contain important information about FIBERNET TELECOM GROUP, INC., ZAYO GROUP, LLC, the transaction and related matters.
