Frontier being bought out...Frontier Confratek is one of our clients. This can bring us more business.
New York, March 17 (Bloomberg) -- U.S. stocks may rise, led
by telecommunication shares on merger speculation after Global
Crossing Ltd. agreed to buy Frontier Corp. for $11.2 billion in
stock.
''There will be more mergers in the telecom sector,'' said
Marco van den Broek, who helps manage about $4 billion in assets
at F. Van Lanschot Bankiers in Hertogenbosch, The Netherlands.
Bermuda-based Global Crossing, which sells capacity on its
fiber-optic phone network to other phone companies, said it will
acquire Frontier, a U.S. local and long-distance telephone
company, for $62 a share, or $11.2 billion, by the third
quarter.
The offer represents a 40 percent premium over Frontier's
closing price Tuesday of $44.625. The company said the merger
will boost its earnings starting now.
Global Crossing said on March 11 it's building a phone
network to connect North and South America for about $1 billion,
adding most of South America's major cities to its worldwide
system. |
