360networks, previously known as Worldwide Fiber, announced on March 13, 2000 that it will acquire GlobeNet Communications Group Ltd (GlobeNet), a Bermuda-based company that operates an undersea network linking the United States and Bermuda and is currently extending that undersea network to Brazil and Venezuela.
The deal, worth an estimated $1 billion, is the latest in a series of high-profile moves by 360networks, which is scheduled to make an IPO—worth an estimated $860 million—in April, 2000. Under the agreement, 360networks will pay GlobeNet approximately $600 million in stock and also assume GlobeNet’s $400 million debt. The deal will give GlobeNet shareholders a 5 per cent in 360networks when the company is publicly traded.
Cameron Belsher and Elizabeth Harrison of Farris Vaughan Wills & Murphy in Vancouver are Canadian counsel to 360networks. Alison Ressler of Sullivan & Cromwell is US Counsel to 360networks. Torys is Canadian counsel to GlobeNet with a team that included Peter Ballantyne, James Welkoff, Charles Dalfen and Michael Padfield. Peggy Davenport of Debevoise & Plimpton is US counsel to GlobeNet.