<<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....>>
Bill,
Very good analysis. I think the deal is going to evolve as the following:
BT owns about 20% of GTE by trading in GTE's cash($5.6B) plus BT
stock valued additional $5.4B(totaled $11B) which equals to approx.
$55 a share for GTE share. GTE will offer 1/3 seats to BT in GTE
Board and GTE will keep the BT/MCI Concert. GTE will reduce the cash
requirement by $11B and its stock will go above $50 a share. This will
make BT, MCI, a lot of MM's, FM's, institutional and small investors
happy - a WIN WIN situation for both LONG AND SHORT term
investors. |
