hi Mazman dude, that article was pretty typical of "smartmoney.con." There are a couple of statements in that article that i believe should be corrected (you know this stuff already, but we might have a few new readers):
Deutsche Telekom is likely taking a look. The German phone company wants an international play. But it's been known as a stickler over price, and Global's cocksure execs might not stomach its bureaucracy.
Each of those 3 sentences contain glearing mistatements.
1) Global Crossing's investment banker, Soloman Smith Barney stated yesterday that Global Crossing was first on the list of companies that Deutsche Telekom wanted to buy. They are past the "likely taking a look" stage.
2) "The German phone company wants an international play." How about needs an international play? DT lost over 40% of its customers in the last 12 months due to delegulation in Euroland.
3) Global's cocksure execs might not stomach its bureaucracy.
I don't understand the connection between business deals and management's anatomy. It should be noted that (as one of this thread's other long time shareholders noted in an earlier post), about 2 weeks ago, at the Gliber Tech Conference, Gary Winnick, Global Crossing founder and largest shareholder, stated in no uncertin terms that Global Crossing's business plan would result in several large Telecos being crushed (BT was was singled out as doomed).
when Global bought Frontier, it inherited use of a part of Qwest's network.
Frontier owned 50% of the network that Qwest now owns. Global Crossing now owns that network. More than a year ago, Qwest bought capacity on Global Crossing's AC-1 cable. As part of the settlements of the Frontier/ US West bids, Quest purchased additional capacity on Global Crossing's network.
Or, to clarify, Global Crossing does not use Qwest's network, but Qwest pays Global Crossing.
I could comment on some of the other "mistakes" in the article, but maybe it would be better to leave that to you and some of the other very nice people on this excellant thread that i have enjoyed reading during the 14 months that i have been an investor in Global Crossing Ltd.
anyway, what i am trying to say is i'll take a buyout at $150 this months, but after the new year i want $250. That is reasonable. |
