COMPANY: FIRSTCOM CORPORATION
TICKER: FCLX
EXCHANGE: NASDAQ SMALL CAP MARKET
FORM TYPE: 425
DOCUMENT DATE: JULY 13, 2000
FILING DATE: JULY 13, 2000
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: FirstCom Corporation
Commission File No.: 001-14107
For Further Information:
Lydia R. Rodriguez Adriana Vaccaro Dan Lawler
AT&T Latin America Keytech LD AT&T Corp.
305-774-2368 (office) 5411-4313-8181 (office) 908-221-2219 (office)
305-613-6767 (cell) 5411-4498-4673 (cell) 888-602-5418 (pgr)
[email protected] [email protected] [email protected]
------------------- ------------------------ ----------------
AT&T LATIN AMERICA TO INVEST $500 MILLION
IN DEVELOPING KEYTECH LD
ITS RECENTLY ACQUIRED SUBSIDIARY
MIAMI - July 13, 2000 -- Today AT&T Latin America, the AT&T subsidiary,
and FirstCom Corporation, which plan to merge, announced that AT&T Latin America
plans to invest $500 million in developing its recently acquired subsidiary,
Keytech LD. The business plans also call for the creation of approximately 2,000
new jobs in Argentina.
AT&T Latin America recently acquired Keytech LD, a start-up
communications company in Argentina. AT&T Latin America expects to invest $150
million by mid-2001 and an additional $350 million through the year 2004 to
develop Keytech LD's broadband fiber infrastructure, IP technology position, and
fixed wireless platform with network build-outs in the key business centers
throughout Argentina. The facilities-based operator expects to deploy a network
of 2,500 kilometers utilizing advanced fiber optic technology with an ATM/IP
multi-service platform.
"Through the acquisition of Keytech LD, our additional investments, and
the excellent progress made by the Argentine government in setting regulatory
standards, AT&T Latin America plans to expand Argentina's communications
infrastructure, bring more competition and more jobs to the country," said
Patricio E. Northland, chairman and CEO of FirstCom and chairman and CEO of AT&T
Latin America, once the merger with FirstCom is completed.
"Argentina is key to our regional business strategy and we are now one
step closer to creating a communications company that provides business
customers throughout Latin America with next generation technology and true
end-to-end capabilities for their business needs."
AT&T Latin America's strategy to become a leading provider of broadband
communications services to business customers, coupled with Argentina's opening
telecom
<PAGE>
market and growing demand for advanced services calls for a significant presence
throughout the country.
"Argentina's modernization and the regulatory environment changes in
Argentina make this an opportune time for this investment and it will bring
additional competitive carriers to the country," said John Haigh, president of
AT&T's International Ventures Organization. "The acquisition of Keytech LD gives
us entry into the Argentine market and a cornerstone in a key region for
international business and growth."
AT&T Latin America plans for Keytech LD to offer integrated services to
business customers, including videoconferencing, domestic data transmission,
E-commerce services, Internet and value added services over its own facilities.
Keytech LD has nationwide licenses to provide domestic and international long
distance, data transmission and private networks from November 2000 onwards. It
also has the right to utilize 1910-1930 MHZ spectrum for fixed wireless in nine
of Argentina's largest cities.
The network build-out calls for deploying fiber for broadband transport
in downtown Buenos Aires and its metropolitan area, and priority cities such as
Mendoza, Cordoba and Rosario, during the next two years. Other locations in the
interior will follow, eventually interconnecting more than 40 cities. The
coverage will be complemented with 10,000 square kilometers of fixed wireless
technology.
In November 1999, AT&T Corp. announced plans to form AT&T Latin
America, a company that will merge the operations of Netstream, the Brazilian
competitive local exchange carrier it acquired, and FirstCom, a publicly traded
company with operations in Chile, Colombia and Peru.
AT&T Latin America will provide technologically advanced first mile
data and voice connectivity, while providing the knowledge and experience to
partner with business customers to make a lasting difference. It will establish
a full range of quality business services, one-stop shopping and customer
service in countries where it operates.
About AT&T Corp.
AT&T Corp (www.att.com) is among the world's premier voice, video and
data communications companies, serving more than 80 million customers, including
consumers, businesses and government. With annual revenues of more than $62
billion and 147,000 employees, AT&T provides services to customers worldwide.
Backed by the research and development capabilities of AT&T Labs the company
runs the world's largest, most sophisticated communications network and has one
of the largest digital wireless networks in North America.
About FirstCom Corporation
FirstCom Corporation operates as a publicly traded (NASDAQ: FCLX)
competitive local exchange carrier in four major metropolitan business centers
in Chile, Colombia and Peru. With annual revenues in 1999 of $38MM and
approximately 650 employees at year-end, FirstCom owns and operates a
technologically advanced, fiber optic IP/ATM backbone-network and provides a
wide range of integrated communications services.
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995: The foregoing statements involve known and unknown risks and
uncertainties that may cause AT&T Latin America and FirstCom's actual results or
outcomes to be materially different from those anticipated and discussed in this
press release. Except for historical information contained in this press
release, the matters discussed contain forward-looking statements that involve
risks and uncertainties, including but not limited to economic, competitive,
governmental and technological factors
<PAGE>
detailed in the preliminary proxy statement described below, which readers are
urged to read carefully in assessing the forward-looking statements contained
herein.
In addition to FirstCom's filing of a preliminary proxy statement with
the United States Securities and Exchange Commission (the "SEC"), in connection
with the FirstCom/AT&T Latin America merger FirstCom will file a definitive
proxy statement and there will be an effective AT&T Latin America registration
statement on Form S-4. We urge investors and security holders to read the
definitive proxy statement and effective registration statement when they are
available before they make a decision concerning the merger. Security holders
may obtain a free copy of those documents (when available) and other documents
filed by FirstCom Corporation at the SEC's web site at www.sec.gov. In addition,
documents filed with the SEC by FirstCom may also be obtained from FirstCom
Corporation by directing such request to FirstCom Corporation, 220 Alhambra
Circle, Coral Gables, Florida 33134, Attention: General Counsel, Thomas C.
Canfield (305) 459-6300.
The members of the board of directors of FirstCom Corporation are
Patricio E. Northland, George Cargill, Andrew Hulsh and David Kleinman. As of
the date hereof, there are no other "participants in the solicitation," within
the meaning of Rule 14a-12 under the Securities Exchange Act of 1934, as
amended. Information concerning the directors is set forth in the Preliminary
Proxy statement filed with the SEC.
