The stock of ACC Corp. rose Friday after the long-distance carrier agreed to be acquired by Teleport Communications Group Inc. for $1 billion, pushing aside rival suitor Tel-Save Holdings Inc.
The deal is the latest in a series of consolidations involving smaller telecommunications carriers seeking to take local and long-distance business away from larger incumbent carriers.
Teleport, based in New York, sells local and Internet services to business customers in 57 markets. It had 1996 revenue of $283.4 million, making it the largest independent competitive local exchange carrier in the nation.
ACC, based in Rochester, N.Y., primarily sells long-distance services to business, residential and student customers in the United States, Canada, Britain and Germany. It had revenue last year of about $309 million.
The offer matches Tel-Save’s bid to buy ACC for $50 a share, which Tel-Save, based in New Hope, Pa., said it has dropped.
Shares of ACC rose $2.50, to $46.75; Teleport shares fell $1.50, to $49; shares of Tel-Save shares edged up 12 cents, to $21.62.
