UUNET terminates stock offering

[Reuters]

FAIRFAX, Va. (Reuter) - UUNET Technologies Inc., an Internet
access company, said Thursday it was pulling an offering of 6.62
million shares because of the fall in its stock price over the
past several weeks.
UUNET closed down 50 cents at $24.50, near its 52-week low
of $21.75. UUNET has fallen from a 52-week high of $98.75.
UUNET filed for the offering in early February to raise
money to acquire undersea and European terrestrial fiber optic
cable capacity.
The company said it will continue its plan to acquire
capacity, and it cited long-term leases and various alliances
with carriers as ways to achieve its goal.
``The company is not going to offer stock to the public
under current market conditions,'' said John Sidgmore, UUNET
president and chief executive officer, in statement.
``We believe that the market for Internet-related stocks has
been affected by several recent industry announcements,
especially AT&T's consumer Internet offering,'' he said.
AT&T recently offered a program of five-free hours a month
of Internet access under a promotion for its new business.
UUNET said the market has not adequately differentiated
between Internet companies in the consumer sector like AT&T and
Internet companies like UUNET that serve the business sector.
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[Reuters]