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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: Brian Malloy who wrote (3997)	6/14/1999 8:13:00 AM
From: SJS	Read Replies (1) \| Respond to of 6846

More data.... The telecommunications industry remains a hotbed of merger activity, as Qwest Communications (QWST 44 7/8 +1) announced that it is offering $55 billion in cash and stock to buy U S West (USW 54 7/8 +9/16) and Frontier Corp. (FRO 55 7/16 - 1/4)... Global Crossing (GBLX 50 3/4 +1/4) recently bid on the same two companies... However, QWST's offer for U S West represents a 25% premium over the original value of Global Crossing's bid... Likewise it's offering a 19% premium over the GBLX bid for Frontier... Though GBLX expected to put up a fight, our bet is on the saavy management over at QWST... Deal would better position Qwest, the No. 4 U.S. long distance company, in its battle with industry leaders AT&T (T 53 5/32 -17/32) and MCI/Worldcom (WCOM 88 1/2 -1 5/16) given the targeted companies' strength in local phone connections and wireless phone and data services... Added cash flow also a plus... Secondary winner is BellSouth Corp. (BLS 45 9/16 - 3/16), the Atlanta-based Baby Bell... BLS has a marketing partnership and ownership stake (10%) with Qwest... Consequently, if Qwest is victorious in its bids, BellSouth will hold a stake in the combined Qwest-U S West-Frontier... BLS would also get small ownership stake in GBLX given USW's plans to buy 9.5% stake of GBLX.