Loeb to vote in favor of NEON, RCN merger

By Lisa Kerner

Charlotte, N.C., July 12 - NEON Communications Group Inc. investors led by Loeb Partners Corp., agreed to vote their 4,533,489 shares, or 9.2%, of the company's common stock, in favor of the June 24 merger agreement with RCN Corp.

Loeb's agreement was included in a schedule 13D filing with the Securities and Exchange Commission.

As previously reported, RCN agreed to acquire NEON for up to $5.25 per share, or about $260 million. Both companies' boards of directors have approved the transaction, which is expected to close in the fourth quarter of 2007.

RCN plans to fund the purchase with a debt financing commitment of $250 million, including senior secured term loans and unsecured borrowings, in addition to existing cash reserves.

New York-based NEON provides high-bandwidth fiber optic capacity and end-to-end telecom services to communications companies and enterprise customers in the 12-state Northeast and mid-Atlantic region. RCN, located in Herndon, Va., provides bundled cable, high-speed internet and phone services over its own fiber-optic local network to residential customers.

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