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Icahn pays $700M for XO Communications

Nov. 7, 2005 at 2:28 PM

RESTON, Va., Nov. 7 (UPI) -- Billionaire investor Carl Icahn has agreed to pay $700 million for XO Communications Inc., a Virginia-based wireline telecommunications business he controls.

Icahn, who is buying XO through his New York-based Elk Associates, gained control of XO in 2003 as part of a Chapter 11 reorganization.

XO, which will use the money to retire long-term debt, plans to rename itself, American City Business Journals reported Monday.

The as-of-yet-named wireless business and XO's continuing wireline business are expected to co-market and sell each other's products and services.

"The action we take today will create a pure-play fixed broadband wireless provider that combines significant resources with in-depth industry expertise to meet the growing demand for high-bandwidth broadband wireless services," says XO Chief Executive Carl Grivner in a statement.

"Our new focus on fixed wireless communications will enable us to offer robust fixed wireless solutions to businesses, mobile phone companies and wireline telecommunications companies."

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