Metromedia Acquires AboveNet

AboveNet Communications Inc. will become a wholly-owned subsidiary of Metromedia Fiber Network Inc. in a merger agreement.

AboveNet shareholders will receive 1.175 shares of MNFX Class A Common Stock for each share of ABOV Common Stock. Upon completion of the transaction, AboveNet shareholders will own 16.5% of the fully diluted aggregate number of Class A and Class B shares of Metromedia Fiber Network. As part of the agreement, Metromedia was granted an option to purchase 19.9% of AboveNet's outstanding common stock.

AboveNet will have access to Metromedia's network of over one million fiber miles in North America and Europe.