Global Crossing - GX (formerly GBLX) Message Board

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Technology Stocks : Global Crossing - GX (formerly GBLX)

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To: jerryriti who wrote (1041)	6/2/1999 9:59:00 PM
From: Teddy	Read Replies (1) of 15615

RE: Would you explain why you would not tender your current shares? ....Seems obvious that to tender makes sense. Am I missing something? Would appreciate an explanation. Thanks in advance. jerry, my decision not to tender was made after considering the tax consequences and the place GBLX holds in my total investment strategy. It may turn out to be the wrong choice. (I do have a portion of my portfolio that i trade short term, GBLX is not in that account at this time. As i mentioned, if GBLX gets low enough: i would buy some trading shares, tender those shares.) Basically, if i tendered now at $62.75 i would have to pay short term capital gains tax on about $50 per share. Roughly figuring my Federal and State tax bracket, if i wait until mid August (to get the long term gains rate) i could sell at about $53 and still have the same amount of after tax money as taking $62.75 now. Actually, i do not plan to sell any of my long term GBLX in 1999. I am, of course, hoping that at some time in the future i will be able to sell at a much higher price. Everyone should make their own buy/ sell decisions consistent with their investment strategy. Anyway, here is a little snip from the Q&A in the 8-K (that we are all reading very carefully because we are confused) bold added: 3. Why is U S WEST purchasing 9.5% of Global Crossing? Why is US WEST paying a premium? U S WEST believes that establishing an immediate relationship with Global Crossing provides significant benefits to U S WEST's business strategy. The minority investment in Global Crossing will cement the alliance between the companies, establishing a foundation for an ongoing strategic relationship. U S WEST expects to combine its investment in Global Crossing with transport arrangements, out-of-region DLEC opportunities and data join ventures that will provide both companies with incremental revenues and profitability prior to the closing of the merger.... *OT Question for Tim A.: how did you make out with that one share of a company that you bought in 1968?

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