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Technology Stocks : USW US West: New Things Happening Over the Airwaves
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To: Larry S. who wrote (113)5/20/1999 9:57:00 AM
From: Sjp  Read Replies (1) of 161
 
The question the article should raise is "what are the objectives of this merger?"

The article states: "The core objection from Wall Street analysts appears to be that the companies simply don't create a natural fit."
What does that mean? I'm not reading anywhere what the goal of the merger is (maybe I'm not looking deep enough).

If the goal is to expand GLBX/FRO/USW presence into the local market in the US and thereby gain access to each other's client base in order to expand sales/revenue worldwide, it does make sense.

The #1 biggest problem with this deal isn't that these guys respective client base and infrastructure doesn't/can't compliment each other... The #1 problem with this deal is a diametric clash of corporate cultures & philosophies. A monopoly entering into the real world takes a lot of time and energy.

GLBX/FRO has about 9000 employees. USW has about 55,000.

One major reason the stock has taken a hit (besides Wall Street's hammering the deal) is that brokers all over the world get to call all of those old retired USW employees, put the fear of God in them that their good 'ole stable utility is toast... not to mention that their nice little dividend will more than likely get chopped in the next 9 months.
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