WorldCom bids $40M for Rhythms' assets

WorldCom announced Tuesday that it bid US$40 million for a portion of the assets of bankrupt DSL (digital subscriber line) provider Rhythms NetConnections Inc.

The bid must be approved in U.S. Bankruptcy Court. The WorldCom bid would provide debtor-in-possession financing, which would keep Rhythms' operations running in the parts of the network WorldCom plans to acquire. WorldCom said in a release that the acquired assets would only include facilities where WorldCom already has a significant DSL customer base.

WorldCom did not specify exactly what areas or equipment it intended to buy. In March, AT&T Corp. bought the collocation facilities and equipment of defunct DSL provider NorthPoint Communications Group Inc. for approximately $135 million, expressing its intent to enter the DSL market for businesses and consumers.

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