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

To: Larry S. who wrote (4216)	6/20/1999 3:34:00 PM
From: RTev	Read Replies (1) \| Respond to of 6846

QWST is the stalking horse for BLS. Eventually, BLS and QWST will combine, and hopefully will have FRO and USW in the stable. But wouldn't that kind of combination be received just as badly as this one? The market has put a value -- a low one -- on QWST as a component of a bigger company that includes a Baby Bell. Why would it be worth any more if it were combined with BLS instead of USW? It might even be worth less since it would be a smaller part of the more diversified BLS? At least USW is a narrowly focused company. They do phone, data, and wireless. They divested their extensive cable assets as UMG. They sold off their incumbent-carrier wireless to Airtouch before jumping back in with PCS licenses (and that only in narrow high-profit markets). QWST would have a better chance at keeping at least some of its entrepeneurial spirit if combined with a smaller company. (Especially if it's a company in the same city so they wouldn't lose people through relocation.) I worry that if BLS were to become involved in this deal now, that their investments would set the value of QWST permanently at the point where it is right now.