Carl Icahn’s withdrawal of his latest rejected offer to buy the 10% of XO Communications (OTC:XOHO) that he doesn’t already own leaves the company’s next move hard to predict.
Rob Powell at Telecom Ramblings has an interesting analysis of the conundrum the company now faces. And he throws cold water on some of the current speculation that XO might make an acquisition sometime soon.
XO stirred that speculation by writing in its third-quarter earnings report this week, “We believe that certain opportunities exist today in the highly competitive CLEC industry that may not recur such as, but not limited to, the acquisition of other CLECs.” That observation came in the context of the company defending its decision to raise cash without raising high-yield debt. How it will pull that off in Icahn’s orbit is one of the key questions facing XO.