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VoiceStream shares jump on takeover rumors
By Reuters
October 29, 1999, 4:10 p.m. PT
NEW YORK--Shares of VoiceStream Wireless jumped more than 15 percent today
on rumors the wireless telephone company could be an acquisition target,
analysts said.
VoiceStream gained 13.06 to reach a new 52-week high of 98.81 in heavier-than-normal
trading volume on Nasdaq.
VoiceStream, which is acquiring Omnipoint and Aerial
Communications, may be an attractive takeover target for
Baby Bell companies such as BellSouth or SBC
Communications, SoundView Technology Group analyst
Tim O'Neil said.
"I think it's a matter of the sleeping giants are awakening
and are coming to realization that it's time to move and to
acquire properties," O'Neil said.
BellSouth and SBC both lack national wireless networks,
while companies such as Bell Atlantic and AT&T expand
their wireless operations.
SBC and BellSouth declined to comment. Atlanta-based BellSouth, which has 5.2 million
domestic wireless customers, has said in the past, however, that it does not believe it
needs to own a national network since it has extensive roaming agreements that allow it
to send calls over other carriers' networks.
VoiceStream could not be immediately reached for comment.
Story Copyright ¸ 1999 Reuters Limited. All rights reserved. |
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