Allegiance Telecom Inc. on Friday said it has selected XO Communications Inc. to buy nearly all its assets for $311 million in cash and approximately 45.38 million shares of XO common stock.
Dallas-based Allegiance disclosed the companies expect to finalize the agreements within the next several days and submit an agreement for bankruptcy court approval Feb. 19.
Allegiance says XO would buy all its assets and subsidiaries except for its customer premises equipment sales and maintenance business, its managed modem business and certain other assets and operations.
XO’s bid exceeded the offer Qwest Communications International Inc. made in December to acquire bankrupt Allegiance for $300 million in cash and $90 million in convertible debt.
Shares of XO were trading late this morning at $7.52 on the OTC Bulletin Board.
