Telecity, Interxion deal in doubt as Equinix weighs in

London

BRITISH data centre provider Telecity Group plc said it had decided to enter into takeover talks with Equinix Inc, throwing into doubt a US$2.2 billion all-share deal to buy Interxion Holding NV agreed almost three months ago.

Telecity, which operates some of the huge computer centres which process traffic on the Internet, said on Thursday it believed it was required "by virtue of its fiduciary duties" to enter talks with Equinix over a possible offer of 1,145 pence per share, a 27 per cent premium to Wednesday's closing price.