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I believe a possible upside exists in the BT card. No one is quite sure how they play a part in any proposed deal. If GTE swaps stock for BT's shares, then they save $5,600,000,000 in cash. Another if is if BT takes a larger role in any GTE/MCI deal by negotiating a larger percentage ownership of GTE/MCI. For example, GTE could sell a 20% stake of GTE stock to BT for $10,000,000,000, use the cash to purchase MCI, and swap shares with BT, which would give BT approximately 1/3 ownership and several board seats on any combined company and lower any borrowing. How additional shares plus any interest payments would affect the bottom line, I don't know. But rest assured, the bankers are trying to find ways to make the acquisition and increase share price. It's too soon to tell and my guess is all the cards have not been dealt yet. |
