Graham and Doddsville -- Value Investing In The New Era Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: porcupine --''''> who wrote (1033)	12/17/1998 12:02:00 AM
From: porcupine --''''>	Read Replies (1) of 1722

IBM has no specific plans for proceeds of sale NEW YORK, Dec 8 (Reuters) - International Business Machines Corp. said Tuesday the $5 billion in cash it will gain from the sale of its Global Network business to AT&T Corp. is not earmarked for any specific purpose. "We will use this cash as we use all of the other free cash at IBM," IBM Chairman Louis Gerstner told reporters at a press conference in New York to discuss the sale of the Global Network unit. IBM uses free cash to "invest first in R&D (research and development); we invest in capital to build our future businesses; we make selective acquisitions; we invest in our marketing...the rest is returned to our shareholders through share buybacks. And that sequence and priorities will remain in place," Gerstner said. IBM does not expect to get the $5 billion until the second quarter of 1999, after the sale faces regulatory review. IBM's Global Network business provides a variety of data networking services for clients, including setting up and managing their internal networks and providing external Internet connections. The business serves roughly 35,000 corporate customers in 900 cities in more than 100 countries around the globe and provides Internet access to more than one million individual users in 59 countries. The sale allows IBM to exit the data networking business and focus on its mainstay software, services and hardware businesses. For AT&T, the purchase of the IBM unit, as well a planned international alliance with British Telecommunications Plc , will help the phone company leap-frog into a leading position in providing global networking services to multinational corporations, analysts said. (( Jessica Hall, New York newsroom 212-859-1729))

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next