PSINet Europe for sale

Any bidders?

PSINet Europe is up for sale after its parent, PSINet Inc, filed a motion with the US Bankruptcy Court to auction its European business.

Executives at PSINet Europe are already talking with a number of possible suitors about a possible acquisition although no one at the company would disclose any further information about the negotiations.

The deadline for the auction is next Monday. A new owner should be known sometime next week, although any decision would be subject to US Bankruptcy Court approval.

In a statement, PSINet said: "The decision to file was taken on the basis that it was considered appropriate to draw to a conclusion, negotiations with interested parties.

"PSINet Europe is continuing to assist potential suitors in developing offers qualifying for the auction and will investigate all the strategic options available that best suit its employees, customers and partners."

Earlier this month Cogent Communications Group, Inc confirmed it had bought the US operations of PSINet, Inc for $10 million.

PSINet Inc filed for Chapter 11 bankruptcy protection in June 2001. ®

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