Davis Polk & Wardwell is acting as M&A and SEC counsel to Telefónica and Terra Networks, a Madrid-based internet service provider, in connection with Terra Networks' acquisition of Lycos, the Massachusetts-based internet portal. Telefónica holds a majority interest in Terra Networks. The all-stock transaction is valued at $12.5 billion. Under the terms of the agreement, Lycos stockholders will receive $97.55 worth of Terra stock for each Lycos share, so long as Terra's stock price does not rise or fall more than 20% from recent levels. Partner Mario Verdolini of Davis Polk's New York office is providing tax advice, and partner Patrick Bradford of the New York office is advising on antitrust issues.
June 30 2000