Winstar Comm. (WCII) Message Board

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Technology Stocks : Winstar Comm. (WCII)

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To: wrm1 who wrote (5516)	4/27/1998 5:12:00 PM
From: Bernard Levy	Read Replies (2) of 12468

Dear wrml: The % stake is helpful, but I expected an outright takeover. I suspect that WCII wanted to take an interest in ARTT, but probably reasoned that ARTT is trading towards the top of its range (it is still in the early stages of deployment). By taking a stake in ARTT WCII discourages other suitors or ensures itself a nice profit if a takeover occurs (like BT's profit when WCOM's bid to take over MCI was successful). In addition, if ARTT's stock price weakens, WCII might be able to increase its stake. The key is that WCII gains a foothold in Europe and is gradually building an impregnable position in the broadband wireless market. One other move that WCII might want to make about 6 months from now would be to buy CVUS's NY license. I expect that at that time CVUS will be destitute, so that the license should be dirt cheap. The idea behind this move would not be to use the license, but to box WNP out of the NY market. WCII needs to use its strategic positioning to scare away competitors. This is what a dominant market position does for you. Best regards, Bernard Levy

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