Here is European Telco - reported earnings warning today, got crushed like a grape... While I do not expect ATI to have bad earnings this Q, past this Q they could have big problems, these prices - at all time high seem like good exit... Greenspan has defined S. America, Asia and Russia as "crisis". Don't get too greedy here.
Any deal with Vod will likely be merger - just to help maintain rates so the two don't have to compete with each other and in so doing drive rates down. Don't expect a merger to increase stock price, any deal will not be a buyout IMO.
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BEFORE THE BELL -- Alcatel pounded down
NEW YORK, Sept 17 (Reuters) - Alcatel's New York Stock
Exchange-listed shares fell sharply preceding the market open,
matching the telecoms gear maker's tumble overseas after it
issued a profit warning based in part on Russian and Asian
economic turmoil.
Ahead of the U.S. opening bell, Alcatel's stock dropped to
20-3/4 from Wednesday's NYSE close of 31-1/4, traders said.
Earlier in Paris, the French company warned of profit
weakness, blaming a drop in orders from its traditional client
base and the crises in Asia and Russia.
Trading in Alcatel was suspended on the Paris bourse and
then requoted down 28 percent at 668 francs at 1130 GMT, but
soon fell further and was suspended again at 650 francs.
Alcatel said in a statement that its operating income at
its key telecoms segment "will be adversely impacted by the
sharp investment cuts recently decided by some traditional
operators and the deepening of the Southeast Asian and Russian
crisis."
The news weighed on shares of Alcatel's competitors in
European trade, declines that spread to U.S. pre-open activity.
REUTERS
Rtr 09:24 09-17-98
Copyright 1998, Reuters News Service
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