By Heather McLean, 27 June 2002 11:35
NEWS Alternative telecommunications carrier Fibrenet has closed down its loss making French and German operations because of the costs involved in replacing the network lost when KPNQwest went bankrupt. UK-based Fibrenet said it had suspended operations in Germany and throughout most of France because the company could not justify the cost of replacing KPNQwest's assets in the two regions. The company said it will take a £75m write down charge on the value of its assets in Germany and France including restructuring costs and a one off charge of £15m. Fibrenet said it will save around £9m each year by cutting out the two countries, leaving it with a healthy metropolitan business in Frankfurt and a UK alternative network with £46m in the bank. Shares in the business traded at 48.5p or 2.1 per cent higher as the market agreed with Fibrenet's cost cutting move.
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