Colt bond buy back slashes debt

'Like buying pound coins for 60p'...

By Julian Goldsmith, 4 September 2001 08:22

NEWS Troubled broadband communications provider, Colt Telecom saw its shares rise yesterday after it bought back £115m of its own bonds. The company endured intense speculation over the weekend of a possible takeover bid waiting in the wings. The move has reportedly shaved £47m off the company's debt. Investors saw the bond buyback as a sign that the company is confident it can find the £600m extra funding it needs by the middle of next year. John Doherty, Colt's director of investor relations told the Financial Times: "The rationale is that the bonds were trading at such a substantial discount to book market that it's a bit like someone selling £1 coins for 60 p. It's madness not to buy them."

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