XO Nevada to buy out 2 minority owners

Tuesday, June 26, 2001 | 11:09 a.m.

XO Communications is asking state regulators to approve a plan in which it would buy out two minority shareholders in its Southern Nevada operation.

XO sells phone and Internet services to businesses.

XO Nevada, the local division of the Reston, Va.-based company, plans to acquire the 37.5 percent interest in XO Nevada held by Cox Communications Las Vegas Inc. and the 12.5 percent interest held by G.C. Investments Inc., XO's application with the Nevada Public Utilities Commission says.

Besides acquiring the equity interests of Cox and G.C., XO is assuming the debt interests in XO Nevada held by Cox and G.C. The amount of debt to be acquired was not disclosed.

XO plans to buy out the shareholders with XO Class A common stock, cash and credits for services, XO's application says.

G.C. Investments is controlled by brothers Brian and Danny Greenspun. The Greenspun family owns the Las Vegas Sun.

Cox, the dominant cable television provider in Las Vegas, is controlled by Atlanta-based Cox Communications Inc.

The value of the deal was not disclosed. The companies also did not say why the minority shareholders are selling their interests.

Executives with XO Nevada declined comment and Cox officials couldn't be reached for comment. Phillip Peckman, chief operating officer of the Greenspuns' firm the Greenspun Corp., said he couldn't comment on the deal.

The deal is expected to close next month.

Regulators are expected to rule on the application after the PUC staff studies the request and makes a recommendation to the PUC members. The agency is accepting public comment on the application through July 5.

It's unclear whether there will be a public hearing on the matter.

XO, which currently owns 40 percent of the Las Vegas division, runs the firm's day-to-day operations. Upon completion of the transaction, no change in management will result, documents filed with the Public Utilities Commission state.

XO Nevada has about 140 employees, the company said.

Following closure of the deal, XO Nevada will own 90 percent of the Las Vegas operation and Dallas-based Start Technologies will remain the only minority owner with a 10 percent stake.