More info about WCOM bidding/or not bidding for ATI:
AirTouch stock extends four-day rally
January 7, 1999 09:31 PM
investor.msn.com
Arbitrageurs, who specialize in trading of takeover stocks, said
that Lehman Brothers and CS First Boston had urged WorldCom
to consider a bid for AirTouch.
Lehman Brothers and CS First Boston declined to comment.
"Some bankers have sat down and talked about this, but I see
less than a 15 percent chance that a bid would proceed," said
one arb who declined to be named.
"It doesn't make any sense at all that WorldCom would make the
bid. Ebbers has said he wouldn't dilute (his company's earnings)
more than a few pennies," another arb said.
A potential AirTouch acquisition, depending on the price, could
dilute MCI WorldCom's earnings as much as 10 percent, some
analysts said.
The prospect of an AirTouch acquisition spooked some MCI
WorldCom investors, analysts said. MCI WorldCom, the most
active Nasdaq issue, hit an intraday low of $73.50 but rebounded
somewhat to close at $75.125, down $3.25.
Ebbers on Thursday talked with some large shareholders, who
were unhappy about the report of a potential AirTouch bid, in an
attempt "to hold their hands and calm them down," one arb said.
Buying AirTouch would give MCI WorldCom a large foothold in
the wireless business, but it would still lack a way to compete
nationally against AT&T and Sprint PCS. So, additional wireless
acquisitions after AirTouch may be necessary, analysts said.
An AirTouch deal would follow WorldCom's $40 billion acquisition
in September of MCI Communications Corp. and absorbing two
massive deals so close together could be a challenge, analysts
said. |
