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Global Crossing


said Tuesday that it would acquire



, a provider of network services to the financial community, and its parent company,

IPC Communications

(IPI) - Get Intrepid Potash, Inc. Report

, for stock valued at $3.8 billion.

The deal is the latest within a year for Global Crossing, a telecommunications company that has been expanding in part through acquisitions.

But some Global Crossing shareholders were unhappy with this latest move. Shares of Global Crossing, based in Hamilton, Bermuda, were down 4 1/16, or 8%, to 48 5/16 in midday trading Tuesday. They closed down 3 5/8, or 7%, at 48 5/8.

Meanwhile, IXnet was up 2 9/16 to 55 1/16, and IPC was up 104 to 244. IXnet finished up 3 9/16, or 7%, at 55, and IPC closed up 104 1/4, or 74%, at 244 1/4.

Global Crossing said it would exchange 1.184 of its shares, valued at $62.03, for each IXnet share not owned by IPC and 5.417 of its shares, valued at $283.71, for each share of IPC. It said the transaction values IXnet at about $3.65 billion and IPC, excluding the value of its IXnet shares, at about $150 million. IPC owns about 73% of IXnet's fully diluted shares.

The companies expect the acquisition to be completed in the second quarter.

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Citicorp Venture Capital

, which owns about 60% of IPC, has approved the transaction.

"We will now move to the next level beyond providing building-to-building connectivity in major cities -- providing desktop-to-desktop connectivity for multinational corporations worldwide," said Bob Annunziata, Global Crossing's chief executive, in a statement. "IXnet will leverage our seamless global network through the provision of sophisticated IP

Internet protocol and data services to financial institutions."

Global Crossing will also save money by moving IXnet from leased lines onto Global Crossing's global fiber optic network, which is due to be completed soon.

The deal follows Global Crossing's acquisition last year of


, a long-distance telephone company, and

Racal Telecom

, the telecommunications arm of

Racal Electronics

of Britain.

Chase Securities

acted as the financial adviser to Global Crossing, while

Salomon Smith Barney

did the same for IPC and IXnet.