FiberNet Telecom Group, a New York provider of broadband interconnectivity services, said today that RCN has dropped its bid to purchase the company for $12.50 per share.
On June 16, RCN sent a letter to FiberNet that included a purchase offer of $96 million, which trumped a previous offer of $88 million by Louisville, Colo.-based Zayo Group.
Now that RCN has dropped its bid, FiberNet said it would proceed with closing a deal with Zayo Group, which was $11.45 per share in cash.
In addition to other conditions, the deal needs the approval of the Federal Communications Commission and state regulators and a vote by FiberNet shareholders.
FiberNet said the transaction is not subject to any financing conditions. The transaction is expected to close during the third quarter of this year.