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Equinix tries to woo Telecity away from Interxion

2015-05-07 08:34:00| Telecompaper Headlines

(Telecompaper) Data centre operator TelecityGroup said it has received an approach from Equinix, regarding a possible offer for Telecity at GBP 11.45 per share. Around 45 percent of the consideration would be payable in cash and 46 percent in Equinix stock. Telecity and Interxion recently signed an agreement that prohibits the parties from soliciting or discussing alternative proposals except in limited circumstances. One of the exceptions is where the directors of the relevant party believe they are required to do so by virtue of their fiduciary duties or other applicable law. In that light, Telecity has determined that it is required by virtue of its fiduciary duties to enter into discussions with Equinix and has decided to permit Equinix to undertake a short period of due diligence. Data centre operator Equinix confirmed it was in preliminary talks with Telecity. Although nothing is firm, the board of Equinix believes the potential deal would create a more compelling combination than the proposed merger with Interxion Holding and that it would deliver greater value for Telecity shareholders.

Tags: woo equinix

Category:Telecommunications

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