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


To: RTev who wrote (4671)7/23/1999 3:23:00 PM
From: Roger Hess  Read Replies (1) | Respond to of 6846
 
Some 'qwestions':

I don't understand all of the details of the proposed merger, but isn't it somewhat dependent on the price of Qwest's stock?

I owned Amati several years ago and when someone tried to buy them out with stock, the prices of the two stocks sort of 'locked' - as one went up, the other did, as one went down, the other did, in roughly the same ratio.

The point I'm trying to make is that the price of the stock of the two companies may somewhat be 'linked' - as one goes, so goes the other.

If Qwest's stock starts going up, won't U S West's? If U S West's stock doesn't go anywhere (which I'm afraid of), then won't Qwest's stock stand still, too?

What I think may happen is the price of Qwest will stagnate until the merger is completed.

Let's hope not. We're four days past the announcement and Qwest hasn't jumped like I thought it would, so maybe this is what will happen.



To: RTev who wrote (4671)7/23/1999 3:43:00 PM
From: RTev  Read Replies (1) | Respond to of 6846
 
Speaking of the service problem issue, Bloomberg News weighs in with this story, but offers few details (at least in this version):

Analysts see Qwest hurdle: US West service problems
seattletimes.com

Some highlights:

Nacchio, who will lead the combined company, needs to improve customer service as he pushes into fast-growing data and wireless services. That may prove to be a tall order for US West, which has had a near-monopoly for 15 years, and a history of being penalized for failing to meet service obligations.
...
Nacchio is seeking to transform the new company into a fast-moving, nimble organization as it takes on bigger companies such as AT&T, analysts said.
...
Still, US West has to overcome the company's reputation for poor service. In 1995, it paid $5.3 million in penalties to Colorado regulators for failing to meet service obligations over three years. It spent $1 million more providing cellular service for customers whose orders weren't met.