CEQUEL Venture Closes Broadwing Deal6/13/2003 8:00 AM Eastern
C III Communications LLC -- a joint venture between Corvis Corp. and CEQUEL
III, the telecommunications-investment and management firm headed by former
Charter Communications Inc. CEO Jerry Kent -- said Friday that it has closed its
purchase of Broadwing Communications for $91 million.
C III had agreed in February to purchase Broadwing from Cincinnati Bell Inc.
for $129 million. CEQUEL III spokesman Pete Abel said the price was reduced
because certain criteria in the original agreement were not met. He added that
details will be provided by Corvis July 31, when it reports its second-quarter
Corvis is the majority partner in C III with a 96% stake. Cincinnati Bell has
3% and CEQUEL III has 1% equity in the partnership.
As part of the deal, C III also agreed to purchase $17 million in working
capital from Broadwing -- basically a working-capital loan previously issued by
Cincinnati Bell -- for which payment will be deferred for one year.
C III also announced that industry veteran Mark Spagnolo -- former CEO of
data-communications provider UUNET and Metromedia Fiber Network -- has been
named interim CEO of Broadwing.