Dow Jones Newswires -- May 21, 1999
Dow Jones Newswires
DJ Global Crossing Insiders To Limit Role In US West
Deal
Dow Jones Newswires
NEW YORK -- Global Crossing Ltd. (GBLX) inside shareholders who serve on the board or in
executive management agreed to limit their participation in the tender offer, which begins Friday,
that U S West Inc. (USW) will launch for 39 million Global Crossing shares under the companies'
merger agreement.
Global Crossing's founder and largest shareholder, Gary Winnick, as well as senior management,
will tender no more than 30% of their eligible shares. All other Global Crossing directors will tender
no more than 50% of their eligible shares. All other Global Crossing shareholders will have the right
to tender 100% of their eligible shares.
Assuming all shareholders tender all eligible shares into the offer, Winnick and the executives will
still retain about 95% of their total holdings, and the Global Crossing directors will retain in excess
of 91% of their total holdings.
In a press release Friday, Global Crossing said several of its shareholders have agreed not to sell
their shares without the company's consent until after Global Crossing's pending acquisition of
Frontier Corp. (FRO) has been completed. These shareholders include Canadian Imperial Bank of
Commerce, Continental Casualty Corp., MRCo, or their affiliates, and the individual founders and
executives on Global Crossing's board, which in aggregate represent about 78% of the equity of
Global Crossing.
As reported May 17, U S WEST will make a cash tender offer for about 39 million Global
Crossing shares, or about 9.5% of shares outstanding, at $62.75 per share. The offer expires
midnight EDT June 18.
Global Crossing is building and operating a global fiber optic platform for data, voice, video and
Internet transmissions. Its Nasdaq-listed shares closed Thursday at 50 15/16, down 2 7/16, or
4.6%.
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