Broadwing to Be Cincinnati Bell Again
Posted on: Wednesday, 30 April 2003, 06:00 CDT
CINCINNATI (AP) -- Broadwing Inc. (BRW) is returning to its old Cincinnati Bell name after the company abandoned a failed $4 billion investment in the broadband industry.
The company, created in 1999 when Cincinnati Bell Inc. bought Austin, Texas-based IXC Communications Inc., announced the decision Tuesday at its annual shareholders meeting.
"Cincinnati Bell is, and will always be, an excellent company whose outstanding performance has been recently overshadowed by the troubles in our national operations," Kevin Mooney, Broadwing's chief executive officer, told shareholders.
Broadwing blamed its failed broadband investment on the slumping economy and the collapse of Internet stocks, and said in February it would sell its broadband business. C III Communications LLP agreed to purchase the business $129 for million.
Mooney said the company is making progress in completing the sale and reducing debt from acquiring the business. Its debt reached $2.5 billion last year, which worried investors and forced the stock price down.
When it announced the sale, Broadwing said it would complete a restructuring that includes $350 million in new financing and swapping $500 million in senior debt and minority interests for about 26 million shares of the company's common stock.
Mooney succeeded former chairman and chief executive Rick Ellenberger in September. Ellenberger and the board agreed that he should resign after the company's losses in the broadband business, Broadwing officials told shareholders.
The company is expected to report first-quarter results May 6. It said it will begin trading under the new name and ticker symbol CBB on the New York Stock Exchange on May 27.
Broadwing's shares traded at $4.66 Wednesday afternoon, up 14 cents, on the New York Stock Exchange.
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