July 2, 2017
RCN has recently announced that it is interested in purchasing FiberNet Telecom based out of New York for $96 million, which has started an intense bidding war.
The RCN offer was made at the beginning of June, after FiberNet announced on May 28th that it was to be bought from Louisville network operator Zayo for $88 million.
A term in the Zayo contract allowed FiberNet to take other offers into play before the sale concluded so long as the proposals were made before June 17th and the RCN report was allegedly sent on June 16th for the higher price tag.
All three companies declined to comment on the bidding war.
On June 18th FiberNet’s board of directors’ issued an announcement they would favour the merger with Zayo but continue to consider the RCN offer.
RCN provides cable and internet to major Eastern cities including New York, DC, Chicago, Philadelphia, Boston, and New York and has recently been looking to expand by swallowing smaller telecom companies who have crumbled in the economic recession.
FiberNet is based solely in the New York area and has remained quiet since the 18th about which merger proposal it will accept.