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Global Crossing plans tracking stock

The communications carrier registers with the SEC to issue a tracking stock for GlobalCenter, its Web hosting business.

    Communications carrier Global Crossing today registered with the Securities and Exchange Commission to issue a tracking stock for GlobalCenter, its Web hosting business.

    The offering could raise as much as $100 million. Shares of Global Crossing rose $1.13, or 3.75 percent, to $31.13 in early trading.

    Global Crossing, led by industry luminary Leo Hindery, said it will transfer the proceeds from the share sale to GlobalCenter. The spinoff plans to use the funds raised on the public market for its proposed national and international expansion and for general corporate purposes. The Web hosting unit said it may also use part of the funds to make investments or acquisitions.

    GlobalCenter provides Internet infrastructure products and services that incorporate Web hosting and Internet Protocol network services using the Global Crossing IP network. The unit's services include hardware and software purchasing and installation, content distribution, and integration and management services.

    The unit had revenues of $7.7 million with a net loss of $2.8 million in 1997, jumping to revenues of $70.9 million with a net loss of $59.5 million in 1999.

    GlobalCenter has applied to trade under the ticker symbol "GCTR" on the Nasdaq Stock Market. The stock will be offered by an underwriting group led by Morgan Stanley Dean Witter, Credit Suisse First Boston and Chase H&Q. The offering will be co-managed by Bear Stearns, Donaldson Lufkin & Jenrette, Goldman Sachs and Salomon Smith Barney.