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January 4, 2002 — (WEB HOST INDUSTRY REVIEW) — Allegiance Telecom, Inc. (algx.com) yesterday announced that
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it has acquired substantially all of the Intermedia Business Internet assets
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from WorldCom, Inc. (worldcom.com). Terms of the deal were not disclosed but Allegiance and WorldCom confirmed that the transaction is not a financially material event for either company.
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WorldCom was obligated to sell the IBI assets pursuant to a consent decree
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entered into by WorldCom and Intermedia in connection with their merger last
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year.
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That pact required that Clinton, Mississippi-based WorldCom to divest all of
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Intermedia Communications assets, except for its controlling interest in Web
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hosting company Digex Inc.
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In 2000, WorldCom agreed to acquire Intermedia for approximately $3 billion
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in stock, plus the assumption of $3 billion in debt. The deal was completed
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in July 2001.
