FiberNet Telecom investor objects to proposed merger with Zayo Group

By Lisa Kerner

Charlotte, N.C., June 9 - FiberNet Telecom Group, Inc. shareholders led by Carlson Capital LP are opposed to the company's merger with Zayo Group, LLC, according to a schedule 13D/A filed with the Securities and Exchange Commission on Monday.

On May 29, Zayo announced it agreed to acquire FiberNet for $11.45 per share in cash.

Carlson, a 10.1% shareholder, believes the intrinsic value of FiberNet is in excess of $14.50 per share.

FiberNet said it will solicit superior proposals from third parties until June 17.

Carlson, in a Monday letter to the company, urged FiberNet to use the go-shop period to actively solicit appropriate offers for the company.

"If there are buyers willing to offer a full and fair value for this business, we would be pleased to pledge our support in a sale of the company," Carlson said in the letter.

"We would also note that other investors appear to share a similar view regarding the proposed deal, as the stock has consistently traded above the offer price since the announcement," Carlson said.

FiberNet stock closed at $11.55 (Nasdaq: FTGX) on Monday.

New York-based FiberNet provides interconnection services enabling the exchange of voice, video and data traffic between networks.

Zayo Group is a regional provider of bandwidth and telecom services to carrier, enterprise and government customers. The company is located in Louisville, Colo.

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