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Abry partners to acquire RCN for $1.2 billion


05.03.2010

RCN, a cable previously known overbuilders appear in mid-1990, has agreed to be acquired by private equity firm Abry Partners approximately $1.2 billion. Buying Information has been greeted positively by investors as the company `s shares rose 23 percent.


Under the terms of the agreement, RCN investors will have $15 in cash for each share of RCN, which is a 22 percent premium yesterday `s closing price. Abry also assume $669 million from RCN `s debt.


Is expected to close in the second half year, RCN is allowed to take other offers until April 14. Sell itself out now is not a bad idea for the RCN. While RCN has been hard to expand the network to serve residential customers' eyes and his business, only has information every 14 months consecutive net loss, but had to shoulder a heavy economic slowdown.


 

 

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