Buyers circle for Zayo; company confirms it isn’t splitting

BOULDER — Zayo Group Holding Inc. (NYSE: ZAYO) has confirmed it is no longer looking at its plan for splitting into two public companies, amidst rumors that the company may be purchased.

During its  Feb. 7 conference call with investors, the company indicated that it would focus on the network aspect of its business as its core business, but was looking at plans outside of its original one to split. In an 8K filed with the U.S. Securities and Exchange Commission on Feb. 8, Zayo cleared up its remarks during that conference call.

“The Unleash plan we announced in November was designed to increase focus on the infrastructure, or Network, segment, simplify operations, and separate certain higher-level services and customers into a separate entity, along with the Allstream segment,” the statement read. “While the tenets of this plan remain intact, we no longer believe it is in shareholders’ best interests for the separation to include a public spin.”

The decision to remain one company comes during rumors that the company might be purchased. On that same conference call, CEO Dan Caruso addressed the speculation.

“The Zayo executive team is fully committed to viewing all alternatives to maximize the value of the company,” he said at the time. “We would meet with a company that appropriately values our company, but we are also focused on shareholder value by executing strategy. Until the situation changes, we will focus on creating shareholder value as a standalone company.”

Sachem Head, an activist fund, has reportedly pushed for a sale of Zayo. Bids are reportedly getting lower — Blackstone Group offered $30 per share, or $6 billion — which Zayo rejected. Stonepeak Infrastructure partners is also looking at the company, reports the New York Business Journal.

Zayo’s stock price was $25.76 at time of publication.

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