(Reuters) - Zayo Group Holdings Inc on Wednesday put off its analyst day meeting set for March 14 and said it was evaluating options, sending the shares of the communications infrastructure provider up 13 percent in afternoon trading.
Reuters reported last month that activist hedge fund Sachem Head Capital Management had urged Zayo to explore a sale after it rejected acquisition offers from a consortium of private equity firms, including Blackstone Group LP.
Zayo, with a market value of just under $6 billion, operates a 130,865-mile optical fibre network in North America and Europe that helps connect data centres and also serves wireless and landline phone companies.
Zayo also had about $6 billion in debt. If private equity firms succeed in acquiring Zayo, it would represent one of the largest leveraged buyouts of the year.
Digital Colony, a communications infrastructure-focused firm formed by investor Tom Barrack’s Colony Capital Inc and Digital Bridge Holdings, is part of a potential buyer group planning to bid for Zayo, Bloomberg reported, citing a person with knowledge of the matter.
Both Digital Colony and Zayo declined to comment.
The company said it has not set a timetable for the evaluation of its options, but expects a minimum of several weeks to months.
Zayo shares were up at $27.42 in afternoon trading, after losing a third of its market value in the last one year.
Reporting by Supantha Mukherjee in Bengaluru; Editing by Arun Koyyur