Every deal that's happened in the telecom space in the last two months has improved HH's position. How valuable is the first/last mile? Just this year:
DSL IPOs: RTHM, COVD, NPNT
T buying TCI and now UMG
NXLK buying WNP and Nextband
MCI and FON gobbling up MMDS players
Cable industry consolidation: ADLAC, CMCSA, Paul Allen
MSFT buying into T, NXTL, Telewest (UK)
QWST, WCOM, MSFT et al. investing in DSL startups
QWST accelerating local loop buildout
WCII, TGNT, NXLK near all-time highs
Is Hirsch a bumbler? Is ARTT management inexperienced?
Hirsch - Previously vice chairman and CEO of Williams Communications Group; President and COO, Williams Telecommunications Systems (WilTel). WilTel acquired by WCOM in 1995 for $2.5B.
Maxwell (President/COO) - Formerly CEO and president of ICG Telecom Group.
McCambridge (CFO) - Previously, treasurer and VP of corporate development for Control Data Corporation, where he managed the company's highly successful restructuring and recapitalization to create Ceridian Corporation and Control Data Systems; Former SVP and director of corporate finance at Dain Bosworth, Inc.; Former partner at Drexel Burnham Lambert.
Wynne (Director) - Formerly president and chief operating officer of LCI. LCI acquired by QWST in 1998 for $4.4B.
Senter (Director) - Former EVP and CFO of NYNEX. NYNEX acquired by BEL in 1997 for $25.6B.
Hirsch and management have piles of long-term options yet to vest with mucho paper value. Hirsch also bought 200K shares out of pocket when the stock was in the pits last fall. Their personal interests are perfectly aligned with ARTT shareholders.
For a deal not to appear would mean that Hirsch is a liar, that he's incompetent, that his BOD and executive team are all incompetent, and that none of them care about vesting and maximizing the value of their stock options. There is no evidence that any of these, much less all, are true. Unless you're margined to the hilt or have painted yourself into a corner w/ options, I suggest you chill out and enjoy the ride.
Mark
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