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Technology Stocks : ALSK ALASKA COMMUNICATIONS, INC.

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To: Laguna who wrote ()	11/20/1999 1:07:00 PM
From: Glenn Petersen	Read Replies (1) of 3

From the "Offerings in the Offering" column of the November 22, 1999 issue of Barron's: Alaska Communications arrived with a thud on Friday. Despite much advance buzz, the 49th state's largest provider of wireless, Internet and local telephone service sold 10 million shares into the market at $14 and finished the day at 14 1/8. Why the cold shoulder? Alaska Communications, assembled last summer in a combination of Anchorage Telephone Utility, Century Telephone's Alaska business and several other small telcos, is facing a stiff bout of competition. Over the last 15 months, long-distance providers GCI Group and AT&T Alascom have pushed into the local business. According to the prospectus, Alaska Communications lost a 23% share of the Alaska market to rivals over that period. The question for investors: Can the heavily regulated firm survive against nimbler opponents? "Their ability to continue to penetrate their market space in the face of competition is going to be a telltale sign of how successful the conglomeration will be," says Randal Roth, a senior analyst at Renaissance Capital in Greenwich, Connecticut. Then there's the structure of the deal itself. A venture-capital operation run by Saul A. Fox and W. Dexter Paine controls 61% of the company. Fox Paine received $14.2 million in advisory fees upon the consummation of the Century purchase, and also receives a management fee of 1% of revenues. Goldman Sachs was the underwriter.

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