Clearnet, the Canadian wireless play (CLNTF) Message Board

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Technology Stocks : Clearnet, the Canadian wireless play (CLNTF)

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To: Steve Stinson who wrote (193)	5/21/1999 8:38:00 AM
From: Poseidonas	of 214

Expanding on my previous post: It looks like Clearnet has the capability of waiting until 2001 so they can achieve their selling price of $30/share. See National Post article: "The latest loss was in line with analysts' expectations and brings the company's total long-term debt to $1.4-billion. Clearnet, however, has raised $829-million so far this year and is fully funded through the end of 2001, Robert McFarlane, its chief financial officer, told shareholders at the company's annual meeting. Total capital raised for Clearnet's digital wireless service approaches $2.8-billion, while interest rate reductions and other factors have lowered the company's cost of borrowing by 25%." The questions that come to mind are: 1. Who will pay $30/share and take over this enormous debt load. 2. Current developments allows Bell to operate across Canada without Clearnet purchase. 3. Will Clearnet stock hold up value while the company is paying 25% interest and accumulating more debt on the hopes that someone will purchase them at $30/share? If Clearnet doesn't make a deal in the next few weeks, I think more shareholders may be asking themselves these questions and possibly getting out.

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