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

To: SJS who wrote (4131)	6/16/1999 2:14:00 PM
From: SJS	Read Replies (2) \| Respond to of 6846

Saw the following this morning: ___________ Global Crossing Ltd. (GBLX) 48 5/16 Closed: Given the reaction by investors to the unsolicited offer from Qwest Communications (QWST 34 7/8) for U S West Inc. (USW 56 1/8) and Frontier Corp. (FRO 57 5/8), this owner and operator of a global IP-based fiber optic network does not plan to revise its current offers for the two telecommunications companies that are in play. In fact, following the 22.3% drop in the price of Qwest stock following the proposed offer for USW and FRO, Global Crossing is in the driver's seat, holding most of the cards that can allow it to become the winner of these two properties. Both offers are now on par, with the Qwest's offer sinking from an original $55 billion valuation to around $42 billion. While investors were also not enamored with the offer from GBLX to acquire U S West, the sentiment has been significantly more negative to the hostile overtures made by Qwest for this property. The reaction has been more negative because USW is growing much slower than Qwest (for that matter so is Frontier) and many investors feel that in Qwest's attempt to become a major player in the telecommunications arena, it is giving up too much growth that makes its stock too highly valued. Global Crossing, on the other hand, does seem to enjoy more favorable reaction from investors to its acquisition of Frontier. Hence, the much anticipated bidding war between these two contestants may not develop after all since Global Crossing is allowing the market determine which offer provides best value for investors. So far, it has been an easy decision for Global Crossing, but the terrain could change should Deutsche Telekom AG or BellSouth Corp. (BLS has a 10% interest in Qwest) decide to enter the fray and help Qwest win this acquisition contest. So far, no signs from these two latter players which gives Global Crossing the luxury to just sit and wait to see how things develop.