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USWeb IPO attracts Intel

Intel takes an interest in USWeb's initial public offering, looking to gain a $10 million chunk of the company's stock.

Intel (INTC) has taken an interest in USWeb's initial public offering.

In a filing with the Securities and Exchange Commission, the nationwide provider of intranet, extranet, and Web-site solutions for medium-sized and large companies said Intel wants a $10 million chunk of USWeb's stock.

USWeb, which plans to offer Intel a 20 percent discount on its offering price, intends to sell Intel common stock equal to $8 a share should the IPO be priced at $10 a share.

Earlier this month, the company entered into an agreement with Intel in which the companies will jointly define and develop a program designed to establish and promote end-to-end e-business solutions running on Intel platforms, said the filing. The companies will work together on business solutions for advertising.

USWeb is offering 5 million shares of common stock to the public at a range of $9 to $11 per share. The company will generate up to $55 million in capital as a result.

The company will trade on the Nasdaq under the symbol "USWB."

Since April, USWeb has acquired over 20 competitors and affiliates, and the company has said acquisitions are a key part of its expansion.

For the most recent quarter ending in September, the company reported revenue of $5.7 million, up from $2.4 million in the June quarter and up from $411,000 in the September quarter a year ago. Net loss for the quarter was $18 million, or 62 cents a share. That compares with a loss of $15.4 million, or 53 cents a share, for the June quarter, and a loss of $3.9 million, or 14 cents a share, for the September quarter of 1996.

If USWeb's recent acquisitions had been in place by the end of the September quarter, the company would have reported revenue of $9.7 million and a net loss of $17.7 million, or 55 cents a share, compared with revenue of $5.3 million and a net loss of $15.1 million, or 50 cents a share, a year ago.

The underwriters for the IPO include Hambrecht & Quist; Donaldson, Lufkin & Jenrette; Wessels, Arnold & Henderson; and First Albany.

(Intel is an investor in CNET: The Computer Network.)