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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Teddy who wrote (1153)	6/13/1999 9:32:00 PM
From: Tony Wang	Read Replies (1) \| Respond to of 15615

There should be a lot of tender cancellations real quick. That means the bid for 9.5% will have to get done in the open market, along with all those arbitrage shorts. People tendered at $62.50 when the stock was at $46, why do that if the stock is at let say 55, with a possibility of GBLX getting a huge cash infusion, short covering and prices going up? Also, Bell South may see QWST now as too unwieldy, and GBLX as more of an optimal candidate.

To: Teddy who wrote (1153)	6/13/1999 9:43:00 PM
From: D. K. G.	Respond to of 15615

FOCUS-Qwest aims $55 bln snub at Global Crossing By Amy Yuhn NEW YORK, June 13 (Reuters) - Qwest Communications International Inc. said Sunday it offered to buy Baby Bell U S West Inc. (NYSE:USW - news) and long-distance provider Frontier Corp. (NYSE:FRO - news) for $55 billion in cash and stock, attempting to break up rival Global Crossing Ltd.'s (Nasdaq:GBLX - news) plans to buy both companies. In a bid to create a U.S. telecommunications giant, Qwest said it would pay up to $80 per share in its common stock for U S West and $20 per share in cash and up to $55 per share in stock for Frontier. Qwest said it also would assume about $10 billion in U S West debt and $1.4 billion in Frontier debt. The announcement could crush Global Crossing's plans to become a telecommunications powerhouse or could spark a bidding war between the companies. ''It's not like either company is unable to up the ante,'' Jeffrey Kagan, an independent telecommunications analyst in Atlanta, said. ''They both use their high flying stock prices as currency to buy other companies.'' Global Crossing and U S West said in May they agreed to merge in a stock deal worth $37 billion. In March, Global Crossing said it would buy Frontier for $11.2 billion. But the Global Crossing and U S West deal was frowned upon by investors, so Qwest's move could allow Global Crossing bow out gracefully. Qwest said in a statement Sunday its proposals are ''financially and strategically superior to Global Crossing's pending transactions.'' A Global Crossing spokesman was not immediately available for comment. Qwest said it offered to exchange 1.738 shares for each share of Denver-based U S West in a deal worth $80 per share if Qwest buys Frontier or $78 per share if it does not. The company offered $20 per share in cash and 1.181 shares of Qwest stock for Rochester, New York-based Frontier or 1.226 shares if Qwest and U S West combine. The transaction is worth $75 per Frontier share if the U S West accepts Qwest's offer and $73 per share if it does not. The new company would have a combined market capitalization of $87 billion. Qwest said the transactions would increase its earnings per share in the first full year after closing. It said it expected to complete the Frontier deal in December and the U S West purchase by mid-2000. Afshin Mohebbi, Qwest's president and chief operating officer, told Reuters in an interview that the company does not expect significant job cuts, though some administrative functions may be combined. Qwest said it would comply with restrictions on providing long-distance service in U S West's region in order to ensure the two companies may combine. Qwest proposed its offers in letters to both companies on Sunday. Mohebbi said Qwest Chairman and Chief Executive Joseph Nacchio also spoke with executives at both companies and that they promised to review the offer. Qwest offered Solomon Trujillo, U S West's chairman and chief executive, a post as Qwest's vice chairman and would invite Trujillo and three other U S West directors to join its board. Two Frontier directors, including CEO Joseph Clayton, would be asked to join Qwest's board as well. Spokesmen at U S West and Frontier did not immediately return calls seeking comment. Mohebbi said Qwest also discussed the proposals with BellSouth Corp. (NYSE:BLS - news), which owns a 10 percent stake in Qwest. On the New York Stock Exchange on Friday, U S West closed up 56 cents at $54.88 per share while Frontier ended down 25 cents at $55.44, while on Nasdaq Qwest closed up $1 at $44.88 a share. ------ Wow! just found out about this. Personally, I'll keep it simple and hold GBLX. It's sitting in the Roth IRA wont'd need the $$ for another 30 yrs. <g>