DOW JONES NEWSWIRES
FiberNet Telecom Group Inc. (FTGX) is moving ahead with its May agreement to be sold to Zayo Group for $86 million, saying a higher bid from RCN Corp. (RCNI) has been withdrawn.

The broadband provider agreed to a buyout from Zayo, a provider of bandwidth, voice and managed services, for $11.45 a share. FiberNet had the ability to seek higher offers and disclosed Thursday it received a $93.9 million offer from RCN, but the money-losing telecommunications company has since withdrawn the $12.50 a share offer, FiberNet said.

Its shares closed Wednesday at $12.40 and rose as high as $13.33 last month in hopes of FiberNet agreeing to a higher-priced offer. Some investors have been critical of the deal, with 10%-holder Carlson Capital LP saying it undervalued the company. In a letter sent to FiberNet's board, Carlson said it believes the intrinsic value of FiberNet is in excess of $14.50 per share.

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