Latest 21st Century Telecom Group News
Jan 30, 2014
RCN to Acquire 21st Century Telecom Group By SETH SCHIESEL Published: December 13, 1999 Expanding its communications footprint from the East Coast to the Midwest, the RCN Corporation has agreed to acquire the 21st Century Telecom Group for about $260 million in stock, executives close to the talks said yesterday. The deal is expected to be announced today. RCN, based in Princeton, N.J., and operating mainly in the corridor between Boston and Washington, is the biggest concern competing against the regional Bell companies in local telephone markets for residential customers. RCN also provides television and Internet service. In October, RCN got a big lift as Vulcan Ventures, Paul Allen's investment group, invested about $1.7 billion in RCN for a roughly 23 percent stake in the company. The investment by Mr. Allen, one of the founders of Microsoft, gave momentum not only to RCN but also the general concept that new companies can succeed by competing in residential communications markets instead of focusing on the more traditionally lucrative business sector. Now RCN appears to be trying to put Mr. Allen's money to work. 21st Century is a small local communications carrier based in Chicago, a market where RCN has not had a major presence. 21st Century had revenue of only $3 million in the last quarter, compared with $85 million for RCN. But 21st Century is building a valuable asset: a Chicago-area fiber optic network to which the company has connected 600 buildings. In addition to the stock swap, people close to the negotiations said RCN would also assume 21st Century's debt of about $250 million. They added that the deal was contingent on 21st Century's bondholders agreeing to sell their bonds and forgo any additional interest payments. The companies are expected to announce that Robert J. Currey, president and chief executive of 21st Century, will remain in that position as well as assuming additional responsibilities at RCN. Salomon Smith Barney acted as financial adviser to RCN, while Morgan Stanley Dean Witter acted as financial adviser to 21st Century. -------------------- Iasiaworks Financing Iasiaworks, a new Asian communications carrier, intends to announce today that it has received $85 million in financing from a group that includes affiliates of Donaldson, Lufkin & Jenrette and Morgan Stanley Dean Witter, executives close to the deal said yesterday. The new investors will receive about 40 percent of the company, the executives said. Iasiaworks, formerly called Aunet, is a venture capitalist-backed communications carrier led by JoAnn Patrick-Ezzell, a former senior executive in AT&T's Asia operation.