GSTXQ here's today's news.
Sep. 13 (The Columbian/KRTBN)--Work begins today on blending GST
Telecommunications Inc. and its new owner, Time Warner Telecom. A 30-member
"integration team" from Time Warner Telecom is due in Vancouver today to start
three days of meetings on how to meld the companies' operations.
Last month, Time Warner Telecom agreed to buy the assets of Vancouver-based GST
for $690 million. GST filed for bankruptcy in May, overwhelmed by $1.2 billion
in debt.
Time Warner Telecom, which operates primarily on the East Coast, wants access to
GST's West Coast infrastructure, including a 4,200 mile fiber-optic
communications network that links cities from San Diego to Seattle.
GST spokeswoman Kira Higgs said staff from Time Warner Telecom's Colorado
headquarters will work with their GST counterparts in Vancouver to study how the
two companies will come together. Higgs said they will work in several groups,
focusing on such areas as sales, administration and network management.
"We have several folks from Time Warner who are coming out to be with our folks
this week to kick our teams off," Higgs said.
GST employs about 1,000 people, about half of them in the Vancouver area. It is
one of Clark County's largest private employers.
It's not clear how many GST employees Time Warner Telecom will retain after the
sale is complete. On Monday, Time Warner Telecom president Larissa Herda said
her company has been impressed with GST's personnel and "hope to bring most of
them to Time Warner Telecom."
Later this week, GST and Time Warner Telecom will ask the bankruptcy court to
formally approve the sale. Next week Herda plans to come to Vancouver and talk
with GST employees about plans to integrate the two companies.
By Mike Rogoway
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(c) 2000, The Columbian, Vancouver, Wash. Distributed by Knight
Ridder/Tribune Business News.
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