Covad Communications - COVD Message Board

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Technology Stocks : Covad Communications - COVD

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From: paulk	3/18/2006 11:25:21 AM
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The terms of the deal don't look favorable to Covad to me. 12% interest, and able to buy shares @ 1.83 out to 2011 up to 19% of the company during the last web cast conferences Hoffman and Dunn were crowing about how partners were going to fund the build out. Yet this "deal" is nothing but a loan with very crummy rates for Covad. EL may be the lender and you may call this a partner funding, but it sure misses the sprit of what was said during these web conferences. Missing from the press release about this is what performance marks Covad expects EL to meet? EL loaned covad the money. Can EL decide next month that a deal from ATT is better and just walk away from Covad? Kind of like what happened with linesplitting and T a couple of years ago. Covad spent money to set up its system and T never came.

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