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6/20/2002
Rail News: Rail Industry Trends
FECI ponders fleeting fate of telecommunications arm
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Florida East Coast Industries Inc. (FECI) June 20 announced it's retained Morgan Stanley to help review strategic alternatives for wholly owned telecommunications subsidiary EPIK Communications Inc.
"There is over-capacity in the industry, and consolidation among competitors could reduce costs and strengthen service offerings for customers," said FECI Chairman and Chief Executive Officer Robert Anestis in a prepared statement.
EPIK's operating net-asset book value as of March 31 was about $200 million; if FECI consummates a transaction, officials believe it likely would be for less than book value, resulting in a non-cash charge to earnings.
EPIK owns and operates a telecommunications network linking major Florida cities, Atlanta and submarine telecommunications-cable landing
stations around Miami. The company's network includes about 1,850 inter-city route miles (278,000 fiber-strand miles) and 450 metro-ring route miles (19,500 fiber-strand miles).
FECI officials believe an EPIK transaction wouldn't affect the corporation's 351-mile regional Florida East Coast Railway.
"There is over-capacity in the industry, and consolidation among competitors could reduce costs and strengthen service offerings for customers," said FECI Chairman and Chief Executive Officer Robert Anestis in a prepared statement.
EPIK's operating net-asset book value as of March 31 was about $200 million; if FECI consummates a transaction, officials believe it likely would be for less than book value, resulting in a non-cash charge to earnings.
EPIK owns and operates a telecommunications network linking major Florida cities, Atlanta and submarine telecommunications-cable landing
stations around Miami. The company's network includes about 1,850 inter-city route miles (278,000 fiber-strand miles) and 450 metro-ring route miles (19,500 fiber-strand miles).
FECI officials believe an EPIK transaction wouldn't affect the corporation's 351-mile regional Florida East Coast Railway.
