Qwest Communications (Q) (formerly QWST) Message Board

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Technology Stocks : Qwest Communications (Q) (formerly QWST)

Q 80.96

+2.2%

Nov 28 12:59 PM EST

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To: ronin who wrote (4115)	6/16/1999 12:08:00 AM
From: A. Edwards	Read Replies (2) of 6846

QWST's bids for USW & FRO became less superior to GBLX's offer: Salomon Smith Barney June 15, 1999 --SUMMARY:-- Qwest Communications--Telecommunications Services QWEST made a unsolicited offer for both FRO & USW (exchange ratios detailed in note). We believe GBLX offers for FRO & USW are superior to QWST offer given structure of respective deals. QWST bids for USW & FRO underscores validity of GBLX merger agreements & QWST understands virtue of putting together assets w/customers & strategic virtue of increasing scale & scope to become a global end-to-end player. QWST deal is dramatically dilutive to the growth rate of QWST & will be a currency that will likely not pay dividends. Proforma QWST EBITDA growth rate is roughly 15% vs roughly 40% standalone. Proforma rev growth will be about 14%, roughly half QWST standalone rev growth. Applying similar valuation metrics for WCOM to proforma QWST, fair value for QWST is $32-$35 range which is where the stock closed yesterday(6/14/99).

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