XO Communications won a bankruptcy court auction to acquire the assets of Allegiance Telecom and its subsidiaries except for Allegiance’s customer premise equipment sales and maintenance business, its managed modem business and certain other Allegiance assets and operations. The wining bid was for approximately $311 million in cash and approximately 45.38 million shares of XO common stock.
XO said the acquisition would make it the nation’s largest national local telecommunications services provider, with approximately 330,000 customers and more than $1.6 billion in revenue. The company will have the largest network of nationwide connections to regional Bell operating companies’ networks of any other CLEC, and double the PoPs within the 36 markets where both XO and Allegiance operate. http://www.xo.com
- In December 2003, Qwest Communications had bid $300 million in cash for Allegiance Telecom.
- Allegiance Telecom, which filed for Chapter 11 bankruptcy protection in May 2003, carries approximately $550 million in telecommunications traffic annually.
