Baffled also, though I'm not a GTE shareholder, these downgrades boggle my mind. I am a TCG shareholder. AG Edwards "mysteriously downgraded TCG to a 'hold' yesterday. Similar to GTE there is no rational reason in my mind for this, nor was rationale provided by AG Edwards. Simply downgraded. Like GTE, TCG is supposedly in talks with AT&T. Like GTE, the stock had risen recently on takeover speculation. No bad financial news.
TCG's status as the only CLEC with a nationwide footprint makes it an ideal fit for AT&T and a great fit for a AT&T-GTE combo. AT&T-GTE still needs the lucrative customers on fiber rings in major metros. GTE's base is more rural and residential in comparison to he strong business base that MCI and WCOM cater to. This is what MFS and Brooks do for WCOM-MCI. Whether AT&T buys either TCG,GTE, or both, they are strategic assets. No reason to downgrade either.
Could there be a three-way deal(AT&T-GTE-TCG)in the works? his would be a Goliath that could match a WCOM-MCI-BT on most every front.
If not, why weren't other similar stocks that have risen on speculation cut(i.e.,ICG,ICI)? Smells a little fishy to me. Something is not right in Denmark... |
