XO Communications Inc.
11111 Sunset Hills Rd.
Reston, Va. 20190
www.xo.com Year founded: 1994 Industry: Telecommunications Revenue: $1.11 Billion Net Income/Loss: ($102,554,000.00) Earnings per share: ($1.07) Dividend: n/a Stockholder equity: $380.43 Million Auditor: KPMG LLP Stock: XOCM Assets: $1.27 Billion Market capitalization: $743.98 Million 52-week high: 8.36 7/9/2003 52-week low: 4.45 4/24/2003 Chairman: Carl C. Icahn President and CEO: Carl J. Grivner Employees: 5100 Local employees: 500 Description: XO Communications is a seller of local and long-distance voice-telephone service as well as Internet services such as high-speed access and Web hosting. It is in 72 U.S. markets serving 170,000 business customers. Billionaire Wall Street financier Carl C. Icahn owns 62 percent. Developments: Icahn bought a majority of the company's debt in bankruptcy and effectively took control early last year after XO's former top managers, chief executive Daniel Akerson and president Nate Davis, left. The company emerged from Chapter 11 bankruptcy protection early last year. Icahn, a legendary corporate raider from the 1980s, is behind XO's latest attempts to buy the assets of bankrupt telecommunications companies. In the past year he has intervened, once successfully, in three deals: Global Crossing, Cable & Wireless USA and Allegiance Telecom. Icahn was unable to take control of Global Crossing by buying its debt but did manage to turn a profit of $33.5 million for XO during Global Crossing's bankruptcy. He lost a bidding war for Cable & Wireless. But he hit pay dirt when he beat out Qwest Communications International Inc. to buy Allegiance out of bankruptcy. That deal is expected to close this summer. Although XO's sales continue to falter, the gain of 100,000 customers from Allegiance leads some analysts to expect XO to be a stronger competitor against more established companies like Verizon Communications and SBC Communications. "Our plan is to compete with the Bells," chief executive Carl Grivner said. "Our strength will be with medium-size businesses that have operations in different parts of the country." The company gives no indication that it plans to stop shopping. On numerous occasions, Icahn, known for buyouts of troubled firms like Trans World Airlines and real estate firms, says the telecommunications industry is "ripe" for consolidation and that XO is considering lots of opportunities to buy. Executive Compensation
CEO: Carl J. Grivner
Total Cash: $542,948.00
Total Compensation: $6,652,119.00
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