Williams Cos Inc has now decided that it will sell its WilTel Network Services business after LDDS Communications Inc made it an offer it couldn’t refuse – $2,500m in cash for a transaction that excludes the WilTel Communications Systems arm, a US-wide telecommunications equipment supplier and service company, and Vyvx, which operates a national video network specialising in broadcast television applications. WilTel Network Services, which employs about 2,100 people, operates one of only four national digital telecommunications networks in the US, much of it laid in empty oil and gas pipelines, the rest built up by acquisition. LDDS, which has specialised in resale of capacity leased from the likes of WilTel, was its biggest customer. Williams will invest the cash in its energy businesses. LDDS has secured a $3,250m underwritten commitment from a group of banks managed by NationsBank to finance the transaction and refinance LDDS’ existing outstanding debt. The LDDS Metromedia unit of Jackson, Mississippi-based LDDS also said that it will unveil a full line of Frame Relay products for its US-wide network in October to provide customers multi-protocol, multimedia data communications and improved cost-effectiveness over most private line point-to-point network applications.
