British data centre provider Telecity Group Plc has opened talks on a possible 2.3 billion pound ($3.5 billion) takeover by Equinix Inc, throwing into doubt Telecity's deal to purchase Interxion Holding NV agreed three months ago.Telecity, which runs some of the huge computer centres which process traffic on the Internet, said on Thursday it believed it was duty-bound to enter talks with U.S. group Equinix over a possible offer of 1,145 pence per share, a 27 percent premium to Wednesday's closing price.The proposed deal, made up of 54 percent cash and 46 percent Equinix stock, sent Telecity shares up 23 percent.Investec analyst Roger Phillips said an Equinix-Telecity tie-up would create the number one player in Europe by a large margin, noting: "If this deal consummates, Interxion is left at the altar looking highly sub-scale, and in our view would likely have to enter an alternative end-game."
Equinix, Inc., is a networking company. The Company engages in connecting businesses to their customers and partners inside networked data centers. Shares of EQIX traded higher by 0.43% or $1.1/share to $258.28. In the past year, the shares have traded as low as $185.22 and as high as $262.00. On average, 898093 shares of EQIX exchange hands on a given day and today's volume is recorded at 805838.
InterXion Holding N.V. is a provider of cloud- and carrier-neutral colocation data center services in Europe. Shares of INXN traded higher by 0.32% or $0.1/share to $30.93. In the past year, the shares have traded as low as $24.53 and as high as $33.16. On average, 581641 shares of INXN exchange hands on a given day and today's volume is recorded at 244188.
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