Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: djane who wrote (5733)	7/14/1999 7:47:00 PM
From: Sawtooth	Respond to of 29987

Just watched a feature story on Irid on CNN Moneyline. Nothing too new but underlying tone decidedly glum. My notes (all paraphrased) for those who missed it but are interested (nice to know what's being disseminated to the general public): Title was "Iridium Busts"; subtitles "Science Friction" and "Lost in Space". - Mot says Irid will restructure, go bkrpt, or liquidate. - Main problems were short supply of phones, poor marketing, and too expensive phones and call minutes. - Mot will not likely infuse additional capital; almost certainly not without major financial restructuring of Irid. . - "Slashing" phone prices and call costs. - Gates and McGraw concerned Teledesic will be tough sell to investors now. - *G was not even mentioned!** FWIW.

To: djane who wrote (5733)	7/14/1999 10:00:00 PM
From: djane	Read Replies (2) \| Respond to of 29987

Fortune. Bell Atlantic vs. Vodafone When Telcos Snarl: A Wireless Spat Gets Ugly Julie Creswell The connection between Bell Atlantic and newly merged Vodafone AirTouch has a bit of static these days. Earlier this year, Bell Atlantic CEO Ivan Seidenberg tried to buy AirTouch, but the California wireless provider opted for a $69 billion offer from U.K.'s Vodafone. When the deal closed in June, a spokesperson told FORTUNE that the Baby Bell would dissolve PrimeCo, its 1994 joint venture with AirTouch, to create a nationwide network. Yet almost a week later, Vodafone AirTouch CEO Chris Gent told FORTUNE that no one at Bell Atlantic had bothered to give him the news. In fact, said Gent, he was hoping to speak with Seidenberg about continuing the venture. PrimeCo may not be dead. Vodafone AirTouch needs to pair with Bell Atlantic to avoid the expense of building an East Coast network. Bell Atlantic may have its own reason to keep PrimeCo alive. To build a national wireless network, Bell Atlantic plans to use assets from its proposed $74 billion purchase of GTE. But in certain markets, taking over those assets would violate a noncompete agreement it has with AirTouch. To honor it, Bell Atlantic might have to divest up to $5 billion in assets, says John Bensche, a wireless analyst at Lehman Brothers. Gent says a court fight can be avoided: "If we can find a way to extend [PrimeCo], we could think about waiving the noncompete agreement." Brinkmanship is something neither side can afford. "Bell Atlantic and Vodafone have to realize the enemy isn't each other. It's AT&T, Sprint, Nextel, and the consolidation of GSM carriers," sighs Gartner Group analyst Bob Egan. "Vodafone and Bell Atlantic are still a pretty nice fit." Just not a match made in heaven. Vol. 140, No. 3 August 2, 1999

To: djane who wrote (5733)	7/15/1999 2:07:00 AM
From: djane	Read Replies (1) \| Respond to of 29987

WashPost. Iridium's Financial Slide Continues By John Schwartz Washington Post Staff Writer Thursday, July 15, 1999; Page E05 Shares of global satellite phone company Iridium World Communications Ltd. took another dive yesterday, tumbling nearly 18 percent after the president of the company's biggest outside investor said that Iridium's story could end in liquidation. Motorola Inc. President Christopher Growney said in a conference call announcing his company's second-quarter earnings that Motorola sees "three possible outcome scenarios" to troubled Iridium's long financial slide: an out-of-court restructuring, in-court restructuring under Chapter 11 of the bankruptcy code or "liquidation in bankruptcy." But Growney said Motorola believes that Iridium can reach "an achievable business plan based on the right financial restructuring solution." Motorola owns approximately 18 percent of Iridium and developed much of its technology; other big shareholders in the publicly traded company include Lockheed Martin Corp., Raytheon Co. and Sprint Corp. Growney said that in the meantime, Motorola does not intend to inject more money into Iridium, which has its headquarters in the District, unless other investors do. Iridium, which launched a network of communications satellites that allows customers to use a single pager or phone virtually anywhere in the world, has stumbled badly in trying to attract customers to its pricey service. The company had pledged to its creditors that it would have 27,000 customers by the end of March, but fell far short of that goal and is in the process of trying to restructure its debts. Last month it announced its creditors had granted an extension until Aug. 11 to meet the terms of an $800 million credit line. The company has also simplified its pricing structure and cut prices this month, reducing the number of international calling zones for North American users from 15 to as few as four, and reducing the price of its handset and per-minute phone charges. Credit Suisse First Boston has lowered its recommendation on Iridium to "sell" from "hold." Iridium spokeswoman Michelle Lyle said the company had no formal response to the Motorola comments. "There's really little to say. It's Motorola's prerogative to outline the possibilities" for Iridium, she said, but "Iridium is only working on one scenario--trying to work with its creditors, its investors, to restructure the capitalization of the company." Discussions with all parties are moving forward, she said. Shares of Iridium World, the publicly traded shares, ended the day at $6.75, down $1.43 3/4, or 17.56 percent. Shares of Motorola, based in Schaumburg, Ill., ended the day at $94.87 1/2, down $1.62 1/2. © Copyright 1999 The Washington Post Company