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To: Sector Investor who wrote (14552)	7/21/1999 1:06:00 PM
From: Greg h2o	Respond to of 42804

CINCINNATI (CBS.MW) -- Local phone carrier Cincinnati Bell said Wednesday it will pay $3.2 billion to buy IXC Communications, which owns a national fiber-optic network. Under the agreement, Cincinnati Bell will exchange 2.0976 shares of for each share of IXC, a 36 percent premium based on the closing prices of each company on Tuesday. Cincinnati Bell (CSN: news, msgs) closed down 1 7/16 to 23 9/16, while IXC (IIXC: news, msgs) ended down 1 1/4 to 36 1/4. The price also includes assumed debt. See press release. Separately, IXC warned that revenue and cash flow -- basically the ability of a company to pay its bills -- would not meet analyst expectations for the second quarter and full year. "The company, which is in the midst of an operational restructuring, reached this conclusion as a result of new management's detailed review of the overall business," IXC said. The Austin, Texas-based company also said the shortfalls would have no impact on its agreement to be acquired by Cincinnati Bell. Stretching out The acquisition underscores Cincinnati Bell's desire to expand nationally behind its current base. Right now the carrier primarily offers local phone service to customers in Cincinnati and parts of Ohio, Indiana and Kentucky. IXC, which is expanding its network to 18,000 miles, is known as a carrier's carrier. Since 1995, the company has been selling wholesale access to its network to regional phone carriers, Internet service providers and others. It went public in 1996. "Customers want providers that go beyond just offering connectivity," said Richard G. Ellenberger, CEO of Cincinnati Bell. "With IXC's next-generation fiber network, Cincinnati Bell will provide end-to-end advanced high bandwidth applications and solutions." After the deal is completed, the new entity will have over 1 million customers, 5,000 workers and a market value in excess of $7.2 billion. Cincinnati Bell said several large shareholders representing 40 percent of IXC have agreed to vote in favor of the merger. In addition, Cincinnati Bell has agreed to buy from General Electric Pension Trust about 5 million IXC shares for a cash price of $50 each

To: Sector Investor who wrote (14552)	7/21/1999 1:15:00 PM
From: Sector Investor	Read Replies (2) \| Respond to of 42804

I took a look at their (JNPR) profit/loss situation. They have never yet made a profit since inception in 1996. The market is obviously looking ahead a few years. Why can't they look even a few months ahead for us? PERIOD FROM THREE MONTHS INCEPTION YEAR ENDED ENDED (FEBRUARY 2, 1996) DECEMBER 31, MARCH 31, TO DECEMBER 31, ------------------- ------------------ 1996 1997 1998 1998 1999 ------------------ -------- -------- ------- -------- (UNAUDITED) <S> <C> <C> <C> <C> <C> CONSOLIDATED STATEMENT OF OPERATIONS DATA: Net revenues............... $ -- $ -- $ 3,807 $ -- $ 10,044 Operating loss............. (1,939) (11,598) (32,270) (4,411) (6,767) Net loss................... (1,799) (10,363) (30,971) (3,905) (6,675) </TABLE> <TABLE> <CAPTION> MARCH 31, 1999 ------------------------ AS ACTUAL ADJUSTED(1) ------- -------------- (UNAUDITED) <S> <C> <C> CONSOLIDATED BALANCE SHEET DATA: Cash, cash equivalents and short-term investments........... $49,449 $111,664 Working capital............................................. 41,756 103,971 Total assets................................................ 67,125 129,340 Long-term obligations, less current portion................. 2,834 2,834 Stockholders' equity........................................ 47,135 109,350