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By Kate Hanaghan, 10 December 2001 12:45

NEWS Fidelity Investments has upped its stake in Colt Telecom to 54 per cent following the telco's latest share issue. In a share sale worth £494m in total, the unprofitable telco will be able to continue expanding its network infrastructure and services. By the end of December it will have 32 of its city networks in place with just one still to be completed. Existing shareholders of the company bought up 97.5 per cent of the 633,430,000 newly issued shares. Fidelity bought 309,550,000 of these plus the remainder. John Doherty, the company's director of investor relations, said: "The net figure of £400m will insure that Colt Telecom is now fully funded." This morning, the company's currently traded shares dipped by almost four per cent to 152.47p from a 52-week high of £19.21. Trading of the new shares will begin on 13 December. Market expectations are that the company will reach profitability by June 2004. Read more about Colt's troubled journey to the new share issue:
Colt walks into shareholder revolt over $400m financing
http://www.silicon.com/a49054
Colt shares soar on new stock announcement
http://www.silicon.com/a47923 And other Colt news here:
Colt bond buy back slashes debt
http://www.silicon.com/a47072
Colt's woes increase as spending slashed
http://www.silicon.com/a46336 To buy related reports or event tickets, click:
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