Verizon Wireless IPO may emerge
Fund manager eyes $5 bln deal as tech, telecom revive
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 10:41 AM ET Jan. 2, 2003
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NEW YORK (CBS.MW) - The ice jam on the $5 billion Verizon Wireless initial public offering may thaw in 2003 as tech and telecom deals start to revive, IPO watchers said.
Verizon (VZ: news, chart, profile) filed the massive IPO for its wireless unit in late 2000, only to postpone the deal soon after. In 2001, it took the IPO out of mothballs, but has yet to move ahead with the deal by filing an expected price range or planning an IPO road show.
But as IPO insiders look toward 2003, hope for the Verizon Wireless IPO is on the rise.
Paul Bard, analyst with the Renaissance Capital IPO Plus Fund (IPOSX: news, chart, profile), said the IPO may move forward, given the size of the deal, a rebound in wireless stocks, and analyst upgrades in the sector.
"We feel it is a deal that has a good shot of making it out the door in 2003," he said. "Obviously, this is predicated on a gradual rebound/upturn in economic and stock market conditions."
Although Verizon Wireless is in a tough sector, it possesses attributes such as its leading market position, strong cash flow, potential dividend yield, and growth opportunities, Bard said.
As investors absorb the doom and gloom of the past three years, some optimism for 2003 is emerging for tech and telecom.
Seagate Technology (STX: news, chart, profile) managed to go public last month in the largest tech IPO in nearly two years -- although the deal is now trading below its offering price.
The Wall Street Journal reported that five technology and telecommunications companies are expected to issue IPOs as soon as this month.
The Nasdaq ($COMPQ: news, chart, profile) has risen 20 percent since late- September in another positive sign for IPOs.
But plenty of skepticism abounds on the tech sector.
Goldman Sachs on Thursday said the latest results of an information technology survey suggest that spending sentiment has taken a "nasty turn for the worse."
The firm concluded that technology sector valuations remain "at lofty levels" relative to the S&P 500, due to a lack of catalysts resulting from faltering demand, an absence of "game-changing" technologies and little pent-up demand.
Janus Capital kicks off trades
Stilwell, the parent company of Janus Capital, will begin trading under a new symbol as the fund manager's reorganization laid out last year takes effect on Thursday.
Janus Capital and Stilwell Financial Inc. merged, with the Janus name replacing Stilwell as the nameplate for the company.
Janus Capital Group Inc. (JNS: news, chart, profile) begins trading on Thursday on the New York Stock Exchange.
Stilwell had previously traded under the symbol "SV." Shares of Stilwell rose 4 cents to $13.07 on Tuesday.
Steve Gelsi is a reporter for CBS.MarketWatch.com in New York. |
