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

To: pass pass who wrote (4473)	7/1/1999 9:27:00 AM
From: Nick	Read Replies (2) \| Respond to of 6846

Another day...another twist... The Wall Street Urinal -- July 1, 1999 Technology Journal: Takeover Talks Between Qwest, Frontier Hit a Snag Over Confidentiality Pacts ---- By Rebecca Blumenstein and Stephanie N. Mehta Staff Reporters of The Wall Street Journal NEW YORK- Qwest Communications International Inc. hasn't yet been able to reach the confidentiality pacts needed before executives can meet with Frontier Corp. to discuss Qwest's unsolicited $12 billion acquisition offer. People close to the situation say the Rochester, N.Y., phone company has asked Qwest to agree to terms for a confidentiality pact before any negotiations begin. Such an arrangement would include a standstill pact that would block Qwest from entering another unsolicited bid. So far, people close to the situation say Qwest is unwilling to go along with such an agreement, though company officials remain optimistic. Frontier announced earlier yesterday that it would open negotiations with Qwest, and the two sides could still meet soon to explore the sweetened bid Qwest put on the table a week ago. A Denver long-distance phone company, Qwest has offered about $47 billion to break up Frontier and U S West Inc.'s previous agreements to merge with fellow telecom upstart Global Crossing Ltd. Global Crossing, based in Hamilton, Bermuda, operates an undersea cable across the Atlantic. And the rivalry to win Frontier and U S West has evolved into one of the biggest takeover battles in recent years. In a move apparently intended to create a friendlier atmosphere, Frontier's chief executive officer, Joseph Clayton, called Joseph P. Nacchio, Qwest's chief executive officer, yesterday morning to tell him personally about the Frontier board's decision. Frontier acknowledged in a public statement that Qwest's bid, which tops Global Crossing's latest bid by about $900 million, "could reasonably be expected to constitute a superior offer." Still, Frontier officials said the expected Qwest negotiations aren't an indication that their deal with Global Crossing is off. In an interview, Qwest's Mr. Nacchio said he looked forward to sitting down at the table with Frontier officials. "I think the corner has turned for us in terms of momentum," he said. Qwest rose 18.75 cents to close at $33.0625, and Global Crossing rose 12.5 cents to close at $42.625, both on the Nasdaq Stock Market, while Frontier gained 50 cents to close at $58.625 in New York Stock Exchange composite trading. For now, Mr. Nacchio said he expects to get a sense within the next few days as to whether Qwest will prevail in its bid for Frontier. He didn't rule out raising his bid, or changing some of the terms. "Within reason, everything is on the table," Mr. Nacchio said.