Viatel plans reverse stock split in connection with bid to go private

By Lisa Kerner

Charlotte, N.C., Dec. 19 - The board of directors of Viatel Holding (Bermuda) Ltd. approved a 1-for-300 share consolidation as part of a going-private transaction.

Shareholders would receive $0.44 per pre-consolidated share for any resulting fractional shares.

The share consolidation is expected to reduce the number of record holders of Viatel common shares so that the company may cease filing periodic and other reports with the Securities and Exchange Commission.

Viatel will also be able to terminate public registration of its common shares.

The move is designed to "significantly reduce" Viatel's securities-related regulatory compliance costs and associated internal costs, according to a company news release.

Viatel shareholders will be asked to vote on the share consolidation within the next few months.

Viatel is a Hamilton, Bermuda-based business communications provider.

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