VeriSign, Illuminet Slip on Deal

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VeriSign (VRSN) - Get Report was down 3% in midmorning after announcing it plans to buy Illuminet Holdings (ILUM) in a $1.2 billion all-stock deal. Illuminet was down 3.8%.

VeriSign will exchange .93 shares of its stock for each share of Illuminet. By acquiring the telecommunications services company, VeriSign, the leading provider of Web addresses, is seeking to become a dominant player in the market for integrated voice and data services.

The deal is expected to increase VeriSign's earnings by 5% to 7% percent in 2002.