From Barron's
Its industry, potential market and underwriters make United Pan-Europe Communications a hot deal. The Netherlands-based company owns and operates cable-based systems for TV, telephone and Internet access in France, Austria, Belgium, Holland, Norway, the Czech Republic, the Slovak Republic, Hungary, Romania, Malta and Israel. In Western Europe, the system is being upgraded to permit two-way transmission.
The company has yet to make a profit and expects to incur continued losses as it upgrades and expands its network. But apparently, Microsoft is a believer. United Pan-Europe has signed a nonbinding letter of intent with the software giant to create a number of joint projects to deliver Internet, non-traditional telephone, interactive video and other services to digital cable set-top devices and PCs. Microsoft is the "preferred supplier" and has the option to purchase up to 3.8 million Pan-Europe shares at $28 each.
This week, United Pan-Europe Communications plans to offer 40 million American depositary shares, including 17.6 million in the U.S. and 22.4 million to international investors, at $27.80-$31.27 each.
United International Holdings will control about 63% of the company's stock after the deal. The joint global coordinators are Goldman Sachs International and Morgan Stanley Dean Witter. The proposed Nasdaq symbol: UPCOY. This communications backbone play looks like a buy and hold.
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Parent company UIHIA's thread
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