Business

Yak Communications agrees to $67.7M US friendly takeover

Long-distance communications company Yak Communications Inc. has agreed to a $67.7-million US friendly takeover by Globalive Communications Corp.

Yak Communications Inc. saw its shares rise more than 31 per cent on Thursday after the company agreed to a $67.7-million US friendly takeover by Globalive Communications Corp.

Yak, which is based in Toronto buttrades on Nasdaq, was up $1.22 at $5.12 US to hit a new one-year high.

The jump, however, still left shares of Yak below the $5.25 US in cash per share being offering by Globalive, a Toronto company that provides operator services, audio and web conferencing, VoIP, wireless services and other products for hotels and home users.

Charles Zwebner, Yak's founder will leave the company when the deal closes, which is expected to occur in the fourth quarter of this year.

Yak, which has about 900,000 customers, offers long distance, local lines and broadband voice service to residential and small businesses.

with files from Canadian Press