Intermedia Communications Inc. said Monday it offered to buy Shared Technologies Fairchild for about $640 million, topping a rival bid from Tel-Save Holdings Inc.
Shared Technologies, based in Wethersfield, Conn., provides telecommunications services to office buildings with several tenants.
Intermedia said its offer is worth $15 a share, topping Tel-Save’s bid of $11.25 a share, or $511 million, made in July. Intermedia’s bid includes about $366 million of stock and $274 million in assumed debt.
The stock of Shared Technologies rose $2.06, or 17 percent, to close at $14 on the Nasdaq stock market. Intermedia shares rose 25 cents, to $44.75, and Tel-Save shares rose $1.12, to $22.62, also on Nasdaq.
Intermedia also said it filed a lawsuit against both Shared Technologies and Tel-Save to force Shared Technologies to approve Intermedia’s offer.
Intermedia, based in Tampa, offers telecommunications services to a variety of clients. Tel-Save Holdings, based in New Hope, Pa., provides long-distance service to businesses.
