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.

Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (1361)	7/16/1999 11:15:00 PM
From: Nick	Read Replies (2) \| Respond to of 15615

Qwest to Buy U S West; Global to Buy Frontier, Person Says Bloomberg News July 16, 1999, 7:28 p.m. PT Qwest to Buy U S West; Global to Buy Frontier, Person Says Denver, July 16 (Bloomberg) -- Qwest Communications International Inc. is close to an agreement to buy local phone company U S West Inc. for $40.5 billion, a person familiar with the negotiations said. Global Crossing Ltd., a rival bidder for U S West, is expected to buy long-distance carrier Frontier Corp. for $12.9 billion, the person said. The transactions would end a month-long bidding contest between Qwest and Global Crossing for the two companies. The U S West board is meeting tonight and the agreement could be announced as early as this weekend, the person said. Under the plan, Qwest, the No. 4 U.S. long-distance company, would gain 25 million U S West customers in 14 Western states. Global Crossing, which is building a worldwide undersea fiber optic network, would get 2 million Frontier customers, a long- distance U.S. network and an Internet-hosting business. Philip Anschutz, Qwest founder and owner of a 40 percent stake in Qwest, and Gary Winnick, Global Crossing founder and chairman, negotiated the agreement, the person said. In return for walking away from a purchase agreement with U S West, Global Crossing will receive $420 million in cash, capacity on long-distance networks and stock, the person said. The amount is about half of the break-up fee written into the original purchase agreement between Global Crossing and U S West. Global also gains because Qwest will drop its higher bid for Frontier, allowing the transaction to proceed without another round of bids, the person said. All of the companies declined to comment. Qwest shares, which fell 22 percent since it bid for Frontier and U S West on June 14, rose 1 1/16 to 35. Global Crossing, which fell 9.1 percent since the Qwest bid, rose 2 1/8 to 46 1/8. Frontier rose 3/16 to 59 1/8. U S West rose 2 7/16 to 60 1/4.

To: Frank A. Coluccio who wrote (1361)	7/16/1999 11:56:00 PM
From: quidditch	Respond to of 15615

Frank, how are you doing? I've been off the thread for a good stretch, as work (how dare it!) has intruded on my SI meanderings. If the next post of the Bloomberg story is true as to dividing the spoils, my take is as follows: GLBX gets a bit of needed cash, gets some of the net feeder traffic and server farms and loses fiber pipe-filling-up traffic from USW, leaving GBLX still as more of a carrier's carrier. The $12 billion plus to be paid for FRO also leaves it meaner, with more valuable stock to pay for an acquisition, and more nimble in terms of what additional pieces Annunziata/Winnick want to add to the mix. Is the question then, does management revert back to the carrier's carrier theme that seemed to define the earlier GBLX, and go after MFNX, or does management continue to seek captive carriers to try to fill up their fiber? Is this, basically, how this moment should be perceived? Best. Steven

To: Frank A. Coluccio who wrote (1361)	7/17/1999 7:46:00 AM
From: lazarre	Read Replies (2) \| Respond to of 15615

yeah, Frank, that's another way of looking at it and the way it boils down. If our 850M is pared, its because Nacchio stared down Anunz from across the table with one simple message: either you give it back to me this way or you give it back to me by having to enter a bidding war with me and my minions---in that scenario, Anunz, you're going to have to pay dearly for your FRO. At least this way, you save you and your investors alot of angst and energy. This, of course, is all gross speculation on my part, you understand. L