Zayo Group made its $88 million buyout offer in late May but there was a caveat: Other companies would be allowed to make competing bids by June 17. And guess what? RCN Corp. did just that on June 16. The offer amounted to $96 million and caused FiberNet’s board some consternation. They said they’d consider RCN’s proposal but that they wanted to sell to Zayo Group. Then, of course, a law firm filed a class-action lawsuit against a Zayo Group purchase, claiming it would not be in shareholders’ best interests.
But on Thursday, FiberNet said RCN has withdrawn its offer. FiberNet said it will proceed with the Zayo merger. Perhaps not coincidentally, FiberNet’s shares were down almost 9 percent near the close of Thursday’s trading activity.
Wonder what sort of arm-twisting took place on the side to convince RCN to back off?