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

To: pass pass who wrote (4582)	7/18/1999 3:15:00 PM
From: Bindusagar Reddy	Respond to of 6846

USW west bought 10% of GBLX stock from shareholders by tender offer. GBLX has not received the cash. In fact GBLX has to buy 140 million GBLX stock back from USW at 62.50 with part of break up fee (1/3) that is 140 million. They only get 140 million cash. Third 140 milion QWST to buy capacity. That might be OK considering their international needs. In reality the break up fee is minimal considering 850 million cash, as per orginal deal. 140 million is worth giving considering the recent earningd miss by FRO and perceived lack of synergies by Wall Street. Wall street should cheer this brilliant move by Joe. I think Joe threw FRO in the game just to negotiate the break up fee, since it was substantial. Overall it is win-win for QWST and GBLX, with QWEST getting the better part of the puzzle. FRO may suit GBLX better, but they are having their problems lately.