PSIX up 26.5%, Takeover(?) Message Board

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Technology Stocks : PSIX up 26.5%, Takeover(?)

PSIX 54.08

+2.8%

Nov 28 9:30 AM EST

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To: amoezzi who wrote (5080)	9/24/2000 5:26:16 PM
From: Curtis Gruber	Read Replies (1) of 5650

Amoezzi, tough to say. All of us could come up w/different numbers on what Psinet is worth. Of course what it is physically worth(book value) and what another company is willing to pay is sometimes totally different. NTT was willing to pay over 5 billion in cash for Verio. WCOM is willing to buy ICIX to get control of DIGX. EXDS is presently valued at approximately 20billion yet Psinet is evidently worth only 2billion right now. There have been numerous comments, some recent one from Vik Grover from Kaufman with some conservative estimates on Psinet's value(i.e carrier services, MMWW+XPDR consulting division, TNS division, Psinet ventures, Inter.net, and of course the thousands of skilled,trained employees around the globe.) With revenues of approximately 2billion this year and estimates of 2.5 billion next year, 4x next years sales seems quite conservative($10billion or approx. $50/share) for a sale price. Personally I could see Psinet going for 12-15 billion but it makes it tough to negotiate a sale price like that when your stock is around $11/share and you've already admitted your revs. are slipping and you need cash. My guess is Psinet will sell in the next 8 weeks or they will stick it out for 9-18 months to give themselves enough time to fully integrate acquisitions, turn a profit, and prove some things to the street. Then with a strong share price they could easily negotiate a buyout price of probably closer to 20billion(esp. once webhosting revs. really start taking off). So it's either sell now for 10billion or stick it out for another year or two to grab 20billion or more. Just my opinion of things, cg

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