After a steep decline in its share price, Verio Inc, the Englewood, Colorado internet service provider, has been forced to reallocate the stock versus cash mix pertaining to its acquisition of Florida-based web hosting firm Hiway Technologies Inc. When the deal was originally announced in July this year, Verio’s share price stood at $29 and Hiway’s stockholders were offered 8.67 million shares and $101m in cash (a combined value of $330m). But following a poor third quarter at Verio, which included a $3.4m charge for job cuts, the company’s shares have fallen as low as $16.50 this week, prompting a new deal which comprises just 4.92 million shares and $176m in cash (a combined value of $257m). Verio put a brave face on the change saying it amounted to a significantly reduced dilution to Verio’s shareholders. Approximately 60% of the shares being issued will be subject to a six-month restriction on their sale, the company said. á
