TELECOM Digest OnLine - Sorted: Vonage Urged to Consider Sale, Float, According to Financial Times

Vonage Urged to Consider Sale, Float, According to Financial Times

Reuters News Wire (reuters@telecom-digest.org)
Thu, 22 Sep 2005 11:34:10 -0500

Vonage Holdings Corp., which provides residential phone services over
the Internet, is being urged to consider a sale while it presses ahead
with plans for a public float, the Financial Times reported on
Thursday.

Citing people familiar with the matter, the Financial Times said UBS
and Deutsche Bank, the investment banks chosen by Vonage to underwrite
its stock market listing, have been suggesting the company pursue a
"parallel process."

This would involve seeking out or responding to expressions of
interest from potential buyers while moving forward with plans to
raise up to $600 million from a listing.

A takeover agreement struck last week for auction Web site EBay
Inc. to buy Internet phone-calling phenomenon Skype for up to $4.1
billion has lead to suggestions that Vonage could also fetch a
generous price in a sale.

Analysts have estimated that Vonage, which is based in New Jersey, is
worth between $1 billion and $1.5 billion, the newspaper said.

Vonage provides discounted local and long-distance phone services to
about 800,000 households, making it the largest U.S. Internet-based
phone company.

Copyright 2005 Reuters Limited.

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