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Infonet-Equant talks end
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October 6, 2000: 9:49 a.m. ET
U.S. telecom operator breaks off negotiations with Dutch network firm
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LONDON (CNNfn) - Infonet Services Corp. has broken off merger talks with Dutch data network provider Equant N.V. because the cash burden of buying the European company proved too much for Infonet, a source close to the discussions said Friday.
Equant (PEQU), which has a market capitalization of nearly  8 billion ($6.8 billion), is continuing talks with other potential partners, the source told CNNfn.com.
Recent volatility in telecom stocks and a demand by Equant's largest shareholder that it receive cash for its 33.4 percent stake contributed to the breakdown of the Infonet discussions, the Financial Times reported.
Sita, a consortium of airlines that formed Equant in 1995, has insisted that potential buyers pay for the stake in cash, not shares.
The company is reopening takeover discussions with France Telecom (PFTE), the report said.
A spokesman for Equant declined to comment.
 Shares in Equant were down 1 percent, or 0.39 at 39.00, after earlier falling as much as 2.5 percent.
The firm reportedly also had failed to strike a deal in its previous merger talks with France Telecom and separate discussions with Global Crossing (GBLX: Research, Estimates).
Equant began as a network linking airlines' reservations. It now operates a worldwide data, voice and Internet distribution system.
El Segundo, Calif.-based Infonet (IN: Research, Estimates) provides Internet, intranet, ATM and integrated voice and data services in more than 60 countries. 
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Equant
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