By Cecilia Kang


RCN, the Herndon cable network operator that has been searching for ways to expand, has offered to purchase New York-based network services firm FiberNet Telecom for $96 million -- setting off a bidding war in the process.

The offer, made earlier this month, came after FiberNet's May 28 announcement that it would be bought by Zayo, a network operator based in Louisville, for about $88 million.

One term in the Zayo agreement allowed FiberNet to entertain any higher offers made before June 17. RCN said it sent FiberNet a letter on June 16 with a proposal to buy it for $12.50 a share in cash, which was higher than Zayo's offer of $11.45 a share.

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