Verizon Communications Inc. (VZ) again extended its $1.4 billion
offer for Terremark Worldwide Inc. (TMRK), this time to the end of
the month, as only about a third of the data-center operator's
shares had been tendered as of Monday.
The deal, Verizon's largest since its $6.8 billion purchase of
MCI in 2005, was announced in January and came as telecom operators
are moving deeper into selling processing power, data storage and
software hosting services over the Internet to replace shrinking
landline business.
Verizon is offering $19 a share in cash, and initially had
planned to close the deal late in the current quarter. The most
recent tally is an improvement from late February, when
stockholders holding about 27.6% of the total had agreed to tender
their shares to the offer.
Verizon in January reported fourth-quarter profit declined 2.6%,
hurt by its declining landline business.
Shares of Verizon and Terremark were down in recent trading amid
a broad market downturn. Verizon was off 1.3% at $34.82 and
Terremark was down 1% at $18.77.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com