ARC/Cogent merger gets OK; Cogent to trade on AMEX
Allied Riser Communications Corp.'s stockholders approved its merger with a Cogent Communications Group Inc. unit, after a judge denied a motion to block the deal.
Dallas-based Allied Riser provides broadband data, video and voice services to small- and medium-sized businesses.
Holders of its convertible subordinated notes due 2007 filed the motion for a preliminary injunction, which was denied by a Court of Chancery in Wilmington, Del., judge. Allied Riser did not say why the motion was filed, and a spokesman could not immediately be reached by CEDaily's deadline.
Under the merger, Allied Riser shareholders will receive about .032 shares of common stock of Cogent for each Allied Riser share in a tax-free exchange.
Cogent, an all-optical ISP, was to start trading today on the American Stock Exchange, if the merger was wrapped up yesterday.
"Not yet," says Cogent spokesman Jeff Henriksen about the trading. "The legal documentation after the shareholder approval took longer than expected."
The merger should be complete and trading begun by Monday or Tuesday at the latest, he says.