Neither of the two parties in the recently announced acquisition of Digex Inc by Intermedia Communications Inc seemed unduly worried by the two shareholder lawsuits filed recently by Digex shareholders. These claimed there was not sufficient provisions in the merger to protect the interests of shareholders in the Washington, DC-based Internet Service Provider (ISP). The lawsuits seek damages and are intended to hold up the merger, but until at least a preliminary injunction is handed down, the merger will be unaffected. Digex says no application has been made yet for such an injunction, and the deal is still on schedule to close July 9. Intermedia, a Tamp, Florida-based provider of local and long-distance telecommunications services bid $150m cash for Digex in June.
