EARTHLINK'S SHARES VAULT 33% IN WEEK.Byline: Ben Sullivan Daily News Staff Writer Shares of Earthlink Network Inc., a Pasadena-based Internet service provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. , rose $1 to $14.50 on Friday, capping a week in which the issue gained 33 percent in value. Friday's gain came on a report in Business Week magazine that a regional Baby Bell may buy a 5 percent to 10 percent stake in the company. With a growing customer base of more than 325,000 subscribers, Earthlink is seen by some analysts as an eventual takeover target Takeover target A company that is the object of a takeover attempt, friendly or hostile. takeover target See target company. by a Baby Bell or other telecommunications company See telecom company. looking to enter the Internet service market. Earthlink Chief Executive Officer Gary Betty described the report of a major Baby Bell investment as poppycock pop·py·cock n. Senseless talk; nonsense. [Dutch dialectal pappekak : pap, pap (from Middle Dutch pappe, perhaps from Latin pappa, food) + kak, . ``I give no merit to a news article that speculates about relationships or potential relationships,'' Betty said. Betty confirmed, however, that an investment group headed by financier George Soros George Soros Born in Budapest, Hungary, in 1930, George Soros is considered by many to be one of the world's greatest investors. A famous hedge fund manager, Soros managed the Quantum Fund, a fund that achieved an average annual return of 30% from 1970-2000. , who already owns about 10 percent of the company, is committed to buying about $5 million of Earthlink stock in a $15 million private-placement deal that could close as early as next week. Earthlink announced a deal with Sir Speedy Inc. on Wednesday in which the chain will resell Earthlink Internet access through its 800-plus North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. copy stores. That news helped push Earthlink stock up 87 cents to $11.75. The Business Week article said Earthlink may also help manage part of Microsoft's Internet operations and in exchange for having Microsoft buy Earthlink shares. Earthlink shares have risen 41 percent since mid-July as investors overcame disappointment over earnings that did not meet expectations. The issue has risen 68 percent since May. CAPTION(S): Chart Chart: (Color) Earthlink surges SOURCE: Bloomberg News Bradford Mar/Daily News |
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