360networks Inc, the Canadian-based owner of TeleBermuda, saw its shares reach a record high this week after announcing a new deal to link communications around the world.

The boost in price of the Vancouver-based global telecommunications firm came after the company on Monday said it had completed the third sale of capacity on its undersea fibre-optic network linking North America and South America.

The company's stock rose $2.55 (CDN$) to close in Toronto at $31.80 (CDN$) after reaching a 12-month peak of $33.60 (CDN$) during the day.

Analysts said investors were growing more confident that 360networks, which began laying cable in July to connect South America with its existing system in North America, can continue to attract large customers.

Under terms of the transaction announced on Monday, 360networks will buy $254 million (US) in capacity and services from Argentina's Impsat Fibre Networks Inc., helping the Canadian firm develop a land-based network in South America.

The company, which bought out TeleBermuda's former parent company, GlobeNet, earlier this year, said it was acquiring $132 million worth of fibre capacity in Impsat's Brazilian and Argentinian systems, and will pay $122 million for telecom data centre space and related services over 25 years.

The space includes what are called points of presence in Rio de Janeiro, Sao Paulo, Buenos Aries and Caracas that will be used to establish 360's South American network.

The company will be headed by Greg Maffei, former chief financial officer at Microsoft Corp., and will have the right to use more than 4,600 kilometres of optical fibre in Brazil and Argentina and unused fibre along Impsat's 66 kilometre ring in Rio de Janeiro.

The acquisition will be part of 360americas, a 28,000-kilometre network which plans to connect the United States, Bermuda, Brazil, Argentina and Venezuela.

"Our long-term strategic relationship with a regional leader such as Impsat enables us to develop a comprehensive terrestrial network in South America quickly and cost-effectively, '' Mr Maffei said.