Updated from 7:52 a.m. EDT
A planned stock deal valued at $7 billion for
Exodus Communications
( EXDS) to acquire the Web site hosting unit of
Global Crossing
(GBLX)
collapsed over the weekend, people close to companies
told
The New York Times
.
The deal hit a snag when Bermuda-based Global Crossing executives pushed for a clause in the deal that would protect their shareholders should Santa Clara, Calif.-based Exodus stock fall dramatically.
Instead, Global Crossing is now likely to take its Web unit,
Global Center
, public through an IPO, the report said.
Global Crossing finished down 2, or 6.1%, at 31.
