Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Fido Leads Colt Bailout Not Rated 3.0 Email Routing List Email & Route  Print Print
Monday, October 08, 2001

Fido Leads Colt Bailout

Reported by Sean Hanna, Editor in Chief

Not everything Fidelity touches always turns to gold. Though unrelated to its core asset management and distribution business, the Boston Behemoth is finding itself having to bail out one of its most successful investments.

The bailout is for the Colt Telecom Group, a United Kingdom-based telecom provider that has been caught in the vice of the worldwide tech slowdown. The deal is not likely to have any significant impact on Fidelity's mutual fund operations, as they are a separate business from the Venture unit.

Colt represented Fidelity's most prominent outside investment through its venture capital unit. Yet Colt's market capitalization has fallen 94 percent from its peak as telecom valuations have imploded.

Now, Fidelity Ventures finds itself as the majority owner of the firm. The venture unit has agreed to lead an round infusing an additional $590 million into the telecom firm. As a part of the deal Fidelity will purchase shares pushing its stake to 54 percent of Colt from its current 47.7 percent. If other buyers fail to step up to the plate Fidelity's stake may rise to as much as 72.7 percent.

British regulators waved a requirement that Fidelity make a an offer to purchase all outstanding shares of the firm. The requirement would have been triggered once Fidelity's stake surpassed 50 percent of Colt's shares. All told the financing involves the sale of 649 million shares at 62 Pence apiece. The price of shares rose 21 Pence to 83 Pence on word of the news.

Fidelity Ventures was a ground floor investor in Colt at its founding in 1992. Ironically, the depression in the Telecom market may leave Fidelity as the major backer of one of the few players left in the British market as competitors lack Fidelity's deep pockets. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

3.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use