Colt raises pounds 700m for European growth
Friday 10 December 1999
Colt said it placed 14.625 million shares at 2,735p to raise pounds 400m. It also placed a seven-year debt offering worth 368m euros (pounds 231m) through convertible notes that will carry a share alternative.
Colt stock rallied 5.2 per cent to 2,849p, valuing the company - although it has not made a profit - at more than pounds 18bn. Colt stock has tripled in the past three years after increasing almost six-fold in 1998.
"We are seeing unprecedented growth in the European market for data transmission, Internet and other high bandwidth applications," said Jim Curvey, Colt chairman. Colt plans to launch DSL services by the end of next year, beginning in Britain, Germany, France and the Netherlands.
High-speed DSL technology should enable Colt to build market share among small and medium-sized businesses, which have been unable to afford the high-speed data networks operated by large corporations. Typically, Colt builds a fibre optic link from its network directly into a firm's premises.
Colt also plans to expand its Web-hosting infrastructure, which runs and manages corporate websites. It expects to launch six dedicated Web hosting centres by mid-2000 and may double that by the year end.
Analysts expect the European market for Web hosting to reach pounds 1.8bn by the end of 2000, up from pounds 300m this year. Web hosting is a major growth area for telecoms operators, notably Cable & Wireless, which is spending heavily to beef up its US-based facilities.
Colt also confirmed it is continuing with a network infrastructure project to link cities from Belgium to Italy. A 3,000-mile network in northern Europe is expected to be completed in the second half of next year, with the southern section completed by year-end.
"The further expansion of our local and inter-city infrastructure will give the end-to-end network control needed to further enhance Colt's leadership position in high bandwidth connectivity," Mr Curvey said.
- 1 Michelle Rodriguez: Fast & Furious actor apologises after telling 'minorities' to stop taking on 'white' roles
- 2 The black and blue dress: Makers considering a white and gold version
- 3 This is what it's like to be dead, according to a guy who died for a bit
- 4 PornHub turns masturbation into energy in bid to save the planet
- 5 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
Stephen Hawking's wife Jane Wilde on their marriage breakdown: 'The family were left behind'
Boris Nemtsov shot dead: Putin critic may have been murdered by Islamic extremists, says president-led committee
British are sexually uptight, dirty and drink too much – according to Spanish book
PornHub turns masturbation into energy in bid to save the planet
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...