Vonage prepares to go public
NEW YORK – Vonage, the company that popularized the idea of using broadband Internet connections for phone calls, is set to go public this week at a price that appears to be drawing plenty of investors but skepticism from some analysts.
A small but well-funded company, Vonage Holdings Corp. has set the pace in the market for voice over Internet Protocol, or VoIP, but its future is far from assured now that the giants of the telecommunications industry, in particular the cable companies, have started getting serious about the business.
The Holmdel, N.J., company is expected to sell 31.25 million shares in its initial public offering, with trading to start Wednesday on the New York Stock Exchange under the symbol “VG.”
The company expects to get $16 to $18 a share, an estimate it reaffirmed in a regulatory filing Monday. The actual IPO price is expected to be set tonight and could still fall outside the estimated range depending on demand.
“Boeing Co. has snagged enough firm orders and tentative commitments for its new 787 airplane to fill its production schedule into 2011, a top executive said Monday.
Mike Bair, vice president and general manager of the 787 program, told reporters and analysts in a conference call that the Chicago-based company remains on track to deliver the first 787 to All Nippon Airways in the early summer of 2008. From there, he said, the company is essentially sold out for production into early 2011. But he warned that some airlines may not follow through on their tentative commitments, leaving wiggle room in that schedule.
Bair said the company was evaluating whether to boost production rates after 2010 and hoped to make a decision by the end of June. The company has logged 350 firm orders for the 787, plus another 43 tentative commitments.
“Grocer and food distributor Supervalu Inc. said Monday it expects to increase profit in the upcoming year once it combines its operations with Albertsons Inc.
Minneapolis-based Supervalu is set to become the nation’s third-largest grocer once the Albertsons deal closes. Shareholder votes are scheduled for May 30 to finalize the deal.
Chairman and Chief Executive Jeff Noddle told a conference call Monday that the deal would increase profits by a double-digit percentage as soon as it closes, excluding acquisition costs.
Supervalu said it would spend roughly $145 million in pretax dollars on the transaction, mostly during the first two years. The company said it expects to deliver $150 million to $175 million in savings from combining the two companies’ operations by the end of the third year.