LVLTcomfort - Yahoo LVLT - Kiewit Taking Private
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A rumor in Omaha...just rumor
by: LVLTcomfort (44/M/Omaha) 04/27/01 04:18 pm
Msg: 68243 of 131890
Disclaimer: I'm superlong LVLT and generally don't bite on rumors concerning LVLT. This rumor came from a SSB office here in Omaha SUPPOSEDLY. I called my broker at SSB who, as a rule, blows off market rumors. He did NOT blow this one off. He denied he knew about it but then promptly stated it would make sense. He's never done that before with me. Maybe it's because it's Friday, or some other reason, but I got a different tone from him than usual. That said, it's still just a rumor and therefore only fodder for this message board.
This has been alluded to on this board a short time ago and has since surfaced in various circles in Omaha. The rumor is that PKS, Crowe/Scott, et. al., and/or other big money people in Omaha may.....MAY step up to the plate and take LVLT private. The number is $30/share but the number is probably the least accurate part of the rumor.
The rationale is that no matter what success LVLT management has with building LVLT, it never satisfies the market, shareholders, or the idiot analysts. So, F**K "UM! Just take it private and keep the booty. To hell with the morons at the brokerage firms. Believe me, these people would have absolutely no trouble raising the capital to take it private, very, very deep pockets.
The building blocks are all going into place. The recent capex crunch was an unanticipated accelerant to LVLT's future success, although not without some negatives, too. All this time we're looking at the incumbant long-distance carriers like AT&T, WCOM, etc. But the gold may be in the RBOC's instead.
Even though the RBOC's are the most heavily regulated now, this is in the process of changing. Once they're allowed to provide long-distance stuff, they'll hand the LD incumbants their heads on a platter.
If you were an RBOC able and willing to launch LD, how would you do it? You couldn't and wouldn't build your own long-haul network. Gosh, maybe you could lease with the bestest and cheapest network on earth...LVLT. You could do this at a fraction of the cost that T or WCOM can operate their own long-haul network. Plus, it's instantaneous. Quick provisioning, BAMMM!! YOU'RE IN.
LVLT's future is phenomenal. So by offering $30/share they're giving a significant premium over current market price. Every analyst around is pissin' and moanin' about how this funk will last forever, so to some people, $30/share ain't bad.
Drawbacks? Many. For instance, once you put LVLT into play, maybe AT&T, WCOM or someone offers $40/share or more. Good for shareholders but it'll make it tough and expensive to take LVLT private then.
What happens to current shareholders if they don't want to sell at $30.
I haven't had a chance to think any of this out. I'm also pretty sure this is all baloney. I would love to hear any thoughts from the stalwarts on this board, whom I have tremendous respect for their opinions.
Personally, I'd rather wait out the next year or so to reap the full benefit of my investment. Maybe the question can be put to Crowe at the annual meeting. With alot of my friends into LVLT with a cost basis of >$60/share, this may be the last time Crowe could safely come to Omaha if LVLT was bought out at $30/share. |
