Hi Don;
In an attempt to keep this thread alive, so that perhaps others with better analysis, insights, or just plain comments will join in, I post the following. I saw it today during lunch, and I sort of hope it doesn't happen, as it might be to large a "pill" for GTE to swallow..
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Friday November 1 12:24 PM EST
MCI Communications Corp up six pct on BT, GTE market rumor
NEW YORK, Nov 1 (Reuter) - Stock in MCI Communications Corp was six percent higher on Friday on renewed rumors that either GTE Corp or British Telecommunications Plc BT.L was to buy the company.
None of the companies would comment, citing policy on market speculation. MCI stock was 1-1/2 firmer at 26-5/8 at 1200 EST/1700 GMT and topped the Nasdaq actives list.
"I've heard this GTE rumor before and it doesn't make sense," said analyst Richard Klugman of brokers PaineWebber. He said GTE is already offering long distance to its own customers and does not want to buy MCI's customer base.
Analysts see more logic to the BT side of the rumor, as the British carrier already has a 20 percent stake in MCI and the two companies share Concert, a joint venture serving multinational corporations' communications needs.
However, BT is blocked from increasing its MCI stake very far by a federal rule on foreign ownership of U.S. telecommunications and media assets, they said.
"I don't think you can get around rule 310 B however you do it," Klugman said of the 1934 legislation that bars a higher stake.
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Comments anyone?
Be well.
Mark |
