Dynegy Inc. is out of the communications business, after agreeing to sell its three-year-old North American communications division to an affiliate of 360networks Corp., a data telecommunications services company. Under the terms of the agreement, 360networks will acquire Dynegy’s entire North American communications operations, including a 16,000-mile high-capacity broadband network that has access points in 44 U.S. cities. No financial details were disclosed.

Dynegy, which has exited energy trading and has been paring down its business to improve its liquidity, also will sell 360networks its customer base, fiber leases, co-location facilities and other obligations and assets related to the U.S. communications network. The transaction is expected to close in April, subject to regulatory and lender approval.

The agreement with 360networks marks the final step in Dynegy’s exit from communications, a business that was launched in August 2000. In January, Dynegy sold its European communications business to a division of Klesch & Co.

“Today’s announcement is significant for Dynegy and its stakeholders as it represents the last major divestiture of non-core assets in our self-restructuring. It leaves us with our three strong energy businesses in power generation, natural gas liquids and regulated energy delivery,” said Bruce A. Williamson, Dynegy’s CEO. “Combined with the recent sale of our European communications business, the completion of this transaction will end our participation in the communications sector, enabling us to focus entirely on the energy business.”

“We anticipate a seamless transition for existing customers and will continue to maintain the same high level of service that has characterized the operations of both 360networks and Dynegy,” said Jimmy Byrd, COO of 360networks. 360networks’ optical mesh fiber network is one of the largest and most advanced in North America, spanning 33,000 miles and reaching 60 major cities in Canada and the United States.

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