ML thinks RSLC will be acquired by GLBX, GTS, QWST
If GBLX does not win Frontier and Frontier's 24 strand, 17,600 mile fiber
nationwide US network, it will likely seek another US long haul fiber
capacity system. In this regard, we highlight IXC (IIXC, D-3-2-9, $42).
We also believe it will seek a US retail salesforce and customer base with
both LD and local assets. In this regard, we highlight ITC^DeltaCom
(ITCD, D-2-1-9, $25 3/16) and CapRock (CPRK, D-2-1-9, $26 5/8), both of
which also would bring regional long-haul fiber networks. We also
continue to believe RSL (RSLC, D-1-1-9, $23) is a prime take-out target,
particularly for its European retail operations that could be attractive to
QWST, GBLX, GTS (GTSG, D-1-1-9, $87 1/16) and others. |
