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Global Crossing Mails Formal Offer Documents to Fibernet Shareholders
- Mailing marks beginning of shareholder acceptance period.
- Offer unanimously recommended by Fibernet's board.
- Fibernet directors and certain institutions have accepted offer.
Florham Park, NJ - September 14, 2006 -- Global Crossing announced today that its subsidiary, GC Acquisitions UK Limited ("GC Acquisitions UK") has mailed the formal offer document and shareholder form of acceptance to Fibernet shareholders, marking the commencement of the shareholder acceptance period. This follows Global Crossing's announcement on August 25, 2006, that GC Acquisitions UK intended to make an offer to acquire all of the issued and to-be-issued share capital of Fibernet Group plc (LSE: FIB). The acquisition, which is conditioned upon acceptance by Fibernet shareholders and approval of regulatory authorities, is expected to close in the fourth quarter of 2006.
"Presenting this offer directly to Fibernet's shareholders moves this transaction one step closer to completion and demonstrates our ability to accelerate value creation for Global Crossing shareholders," said John Legere, chief executive officer of Global Crossing. "We see additional growth opportunities resulting from both consolidation and the adoption of our innovative IP product line by the world's leading multinational and carrier customers and are aggressively in pursuit of them."
The offer has been unanimously recommended by Fibernet's board of directors. The Fibernet directors have irrevocably undertaken to accept the offer with respect to all of their direct and beneficial holdings. In addition, certain institutions have also agreed to accept the offer, subject to conditions. The directors' acceptances combined with the institutional acceptances represent approximately 39 percent of Fibernet's outstanding shares.
For more information, please contact Laurinda Pang of Global Crossing at +1 973 937 0435 or Hawkpoint representatives at +44 (0) 20 7665 4500.
ABOUT GLOBAL CROSSING
Global Crossing (NASDAQ: GLBC) provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 300 cities in 28 countries worldwide, and delivers services to more than 600 cities in 60 countries and 6 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide.
Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e-commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to 36 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs.
Please visit www.globalcrossing.com for more information about Global Crossing.
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This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties that could cause the actual results to differ materially, including: The possibility that the proposed acquisition of Fibernet is not completed due to the failure of a closing condition or the making of a superior offer by another bidder; Global Crossing's history of substantial operating losses and the fact that, in the near term, funds from operations will not satisfy cash requirements; legal and contractual restrictions on the inter-company transfer of funds by the company's subsidiaries; the company's ability to continue to connect its network to incumbent carriers' networks or maintain Internet peering arrangements on favorable terms; the consequences of any inadvertent violation of the company's Network Security Agreement with the U.S. Government; increased competition and pricing pressures resulting from technology advances and regulatory changes; competitive disadvantages relative to competitors with superior resources; political, legal and other risks due to the company's substantial international operations; risks arising out of the company's material weaknesses in internal controls and possible difficulties and delays in improving such controls; the concentration of revenue in a limited number of customers, and the rights of such customers to terminate their contracts or to simply cease purchasing services thereunder; exposure to contingent liabilities; and other risks referenced from time to time in the company's filings with the Securities and Exchange Commission. Global Crossing undertakes no duty to update information contained in this press release or in other public disclosures at any time.
CONTACT GLOBAL CROSSING:
Press Contact
Becky Yeamans
+ 1 973 937 0155
PR@globalcrossing.com
Analysts/Investors Contact
Laurinda Pang
+ 1 800 836 0342
glbc@globalcrossing.com
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