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To: Tomato Man who wrote (14157)	9/3/1999 8:17:00 AM
From: David W	Read Replies (1) \| Respond to of 15313

When they get approval we will not be the first to know. The price will already have gone up a bit before the news starts circulating. dw

To: Tomato Man who wrote (14157)	9/3/1999 8:35:00 AM
From: JW@KSC	Read Replies (1) \| Respond to of 15313

Opportunity Knocks I'm no Rocket Scientist but Global Crossing sounds like an excellent buy now, or should be watched to see if it drops more. With the GBLX at 56% of what it was 5 months ago, and the Frontier deals through, this should fly high towards the end of the year. But then this stuff is long term too. JW@KSC Global Crossing Sweetens Frontier Pact By Jessica Hall Sep 2 4:38pm ET NEW YORK (Reuters) - Global Crossing Ltd. sweetened its pact to buy No. 5 U.S. long-distance telephone company Frontier Corp. by about 12 percent to $9 billion Thursday after a recent decline in its stock price eroded much of the premium it previously offered to pay. Undersea fiber-optic cable builder Global Crossing said it now will pay about $9 billion, or 2.05 shares of its stock for each Frontier share. In exchange for the richer offer, Frontier gave up its right to walk away from the deal if Global Crossing's stock sags. Under the terms of the previous agreement, Global Crossing would have paid about $8 billion or 1.8229 shares of its stock for each Frontier share. Global Crossing's high-flying stock has fallen about 56 percent in the five months since the two companies first agreed to link. The drop erased much of the value of its earlier offers. Global Crossing, a two-year-old company building undersea and international fiber optic communications networks, said the 'amendments are designed to increase deal certainty and demonstrate management's commitment to the strategic merits of the transaction.' ``It takes a lot of uncertainty out of the market on whether the deal was going to close or whether Global Crossing was going to top up (its offer) and puts the focus where it belongs -- which is on the strategic merit of the deal. All the reasons we did the deal on March 15 absolutely still exist and, I would argue, are stronger,' Frontier's President Rolla Huff said in an interview. Global Crossing shares closed 1-9/16 down at 22-7/16 on the Nasdaq. The shares of Frontier closed down 1/2 at 41-3/4 on the New York Stock Exchange. ``It became reasonably clear a week or two ago that given Global Crossing's stock price, some merger adjustment would occur...I'm glad they were able to get to the answer here. From most arbs' perspective, this (deal) is no longer a worry,' said an arbitrageur who declined to be named. Other arbitrageurs, who specialize in takeover stocks, said it was reasonable for Global Crossing to boost the bid price to ensure shareholder approval even if rival suitors were unlikely to surface. The two companies needed each other too much to consider breaking up their merger, analysts said. Bermuda-based Global Crossing needed Frontier's domestic fiber optic network and its local telephone operations to gain a foothold in the United States. Rochester, N.Y.-based Frontier, meanwhile, was too small to compete alone against telecommunications industry giants such as AT&T Corp. and MCI WorldCom Inc. . Together, Frontier and Global Crossing's networks will connect more than 160 of the largest business centers worldwide. As part of the new offer, Global Crossing also said it would also buy back up to $500 million of its stock following the completion of the Frontier deal. Shareholders of Global Crossing will meet on Sept. 22 and shareholders of Frontier on Sept. 23 to vote on the terms of the revised agreement. Shareholders holding more than 51 percent of the voting power in Global Crossing already have agreed to vote in favor of the merger. Shareholders representing more than two-thirds of the equity of Global Crossing, and Frontier's top two executives agreed not to sell any of their shares of Global Crossing within six months of the close, which is expected by the end of September. The deal is expected to be immediately accretive to Global Crossing's operating cash flow. The company did not provide additional details. The new offer marked the second time Global Crossing raised its offer for Frontier. Global Crossing originally offered to buy Frontier in March but raised the offer in May when Global Crossing also offered to buy local phone company U S West Inc. Qwest Communications International Inc. later launched unsolicited bids for both Frontier and U S West and threatened Global Crossings deals. Qwest eventually won the hand of U S West and left Frontier Frontier to Global Crossing.