Briefs

Atlanta—Scientific-Atlanta Inc. has completed its tender offer for Belgian cable-equipment maker BarcoNet N.V.

On Dec. 31, S-A said 92.4 percent of BarcoNet's shares, 99.4 percent of its warrants and all of the company's convertible bonds had been offered. S-A said it will purchase the tendered securities for $142 million in cash on Jan. 3.

The offering will reopen from Jan. 14 to Feb. 1, and if the cable-equipment maker is successful in acquiring at least 95 percent of BarcoNet's shares, it will acquire all of the remaining securities as well, S-A said.

The deal is expected to be closed in S-A's third fiscal quarter, which ends on March 31.

S-A first announced the BarcoNet deal in November. The acquisition will give S-A a foothold in the European market.

Brussels, Belgium-based BarcoNet has about 20 offices worldwide and has built up a significant business in the European and Asian digital and broadcast markets. The company's product lineup includes digital headends, backbone-network gear, network-monitoring systems and video- and audio-distribution technology.

New York—Two shareholders of USA Networks Inc. filed suit in a Delaware court on Dec. 26, claiming USA's agreement to sell its programming assets to Vivendi Universal S.A. for $10.3 billion is not in shareholders' interests, according to published reports.

The shareholders — Ruth and Abraham Ringel — claim USA breached its fiduciary duty by not marketing the assets and holding an auction to attract the highest price.

Vivendi – which had already owned a 41 percent stake in USA – agreed Dec. 17 to surrender that $7 billion stake, as well as $1.65 billion in Vivendi treasury stock and $1.62 billion in cash, for USA's programming assets — USA Network, Sci Fi Channel and Studios USA.

As part of the deal, USA Networks retained its interactive assets, such as TicketMaster and Home Shopping Network, and will rename itself USA Interactive Inc.

The Ringels are seeking class-action status for the suit as well as unspecified damages, according to reports.

Englewood, Colo.—EchoStar Communications Corp. closed a previously announced $700 million bond deal on Dec. 28, through its wholly owned indirect subsidiary, EchoStar DBS Corp.

The senior notes, which will be used to finance EchoStar's pending acquisition of DirecTV Inc. parent Hughes Electronics Corp., will bear interest at an annual rate of 9.125 percent and mature on Jan. 15, 2009.

In a prepared statement, EchoStar said the proceeds will be used to finance a portion of the Hughes merger. If that deal falls through, proceeds from the offering will be used to provide some of the financing for a portion of Hughes' 81 percent interest in PanAmSat Corp.

EchoStar said bond proceeds could also be used to build and launch additional satellites, make strategic investments and acquisitions and for general corporate purposes.

In October, EchoStar announced a deal to purchase Hughes for about $25.8 billion in cash and stock. As part of that agreement, EchoStar said it would purchase PanAmSat whether or not the Hughes merger was approved.

New York—USA Networks Inc. named Dara Khosrowshahi executive vice president and chief financial officer, replacing Mike Sileck, who is leaving the company to join TMP Worldwide as its CFO.

Khosrowshahi currently serves as executive vice president of operations and strategic planning for USA. In his new role, he will continue to report to USA vice chairman Victor Kaufman. USA said it plans to fill Khosrowshahi's old position shortly.

Khosrowshahi joined USA in 1998 and served as president of USA's interactive entertainment division from August 1999 to July 2000. That experience appears key to his latest appointment.

In December, USA agreed to sell its programming assets to Vivendi Universal S.A., and plans to focus on interactive entertainment, changing its name to USA Interactive.

"As the company becomes a pure interactive force, it is perfectly appropriate that Mr. Khosrowshahi oversee the finances of our newly focused enterprise," Kaufman said in a statement.