|
Equant soars on Web deal
|
 |
January 11, 2000: 6:19 a.m. ET
Launch of integrated voice, data service sends Dutch firm’s shares ahead
|
LONDON (CNNfn) - Dutch-based data communications provider Equant announced plans Tuesday to launch an integrated voice and data network based on Internet technology, sending its shares soaring.
The company plans to launch the service across 50 countries in February, allowing companies to link voice and data services to develop services such as Web-based customer call centers.
Equant [PA:PEQU] shares soared 10 percent in Paris, the gain triggering a trading halt at 114.4 euros. The stock, which is also quoted in New York, reopened at 110 euros, a 5.8 percent gain on Monday’s close.
The company said the service, developed in collaboration with Cisco Systems (CSCO), is "a world first”. However, analysts cautioned that Equant faces stiff competition for its blue-chip client list from existing integrated operators and large-scale alliances such as Concert, the joint venture between BT (BT-A) ands AT&T (T).
"This is extremely good news for the company as it proves it is out there [in the market], but there are plenty of others offering this service,” said a London-based analyst, who declined to be named. "But it now has all of the qualities you would want to invest in.”
Equant was spun off last year from Sita, a global communications business owned by a consortium of airlines, and has expanded its data business to target global multinational companies.
While its shares have outperformed the Paris market and surged in December, analysts remain cautious about future performance amid speculation that Sita and Morgan Stanley, its two key shareholders, may further reduce their holdings by selling some of their shares. 
|
|
|
|
|
|
Equant
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
