Fergie's Tech Blog

XO Holdings Calls Off Deal To Sell Wireline Business

XO Holdings Inc., a Reston telecom firm controlled by financier Carl C. Icahn, called off a deal to sell its phone and Internet business to another of Icahn's companies after several shareholder lawsuits delayed the deal.

XO said yesterday that the agreement to sell its wireline business to Icahn-owned Elk Associates was mutually terminated on Thursday. The deal, announced in November, would have been worth $700 million, a figure some shareholders said was too low.

Three lawsuits were brought by shareholders in response to the proposed acquisition. The agreement contained a clause allowing either party to back out of the deal if it did not close by July 3. Earlier this week, Elk told XO's board that it expected the shareholder suits would delay the deal beyond that date.

posted by Fergie @ 4/01/2006 10:24:00 AM