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 : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: John Freeman who wrote (13430)	9/24/1999 11:34:00 AM
From: zbyslaw owczarczyk	Respond to of 18016

Sprint Takeover Talk Cools - For Now By Carey Gillam KANSAS CITY, Mo. (Reuters) - Sprint Corp. (NYSE:FON - news) was fending off speculation about its future Thursday after reports that negotiations for a possible sale to German telecommunications giant Deutsche Telekom AG (NYSE:DT - news) were near a standstill. Sprint officials would not confirm the status, or even the existence, of such talks, but company spokesman Bill White Thursday defended the company's strategy of so far sitting out the consolidation frenzy hitting the telecommunications arena. ``We believe we have the assets in place and the brand and the size and scope that would allow us to go it alone,' White told Reuters. He acknowledged, however, that Sprint's strengths as an independent were primarily limited to the U.S. market, and he stressed the company's commitment to expansion worldwide. ``We will be a global telecom player,' White said. The New York Times reported Thursday that Sprint recently held extensive talks about a sale to Deutsche Telekom. But the talks have stalled, the Times reported. Sprint's stock turned lower Thursday, trading down 3-1/8 at 51-5/16 in the last hour of trading. ``The stock has had a nice run over the last several days on the thought that a deal can come sooner rather than later. But the suggestion it will be later rather than sooner has taken some of the air out of that,' said Guy Woodlief, an analyst with Prudential Securities. Deutsche Telekom already owns a 10 percent stake in Sprint. But so does France Telecom (NYSE:FTE - news), and one complicating factor is that both companies are bound by contractual agreements that restrict them from increasing their investments in Sprint until the year 2005. Still, many believe a near-term deal is inevitable. ``This news today doesn't mean there isn't a strong possibility of them combining,' said ABN AMRO analyst Kevin M. Roe. Roe said that following two initial public offerings by Deutsche Telekom of its Internet business and its mobile business, planned for early 2000, Deutsche Telekom would be well-positioned to make an attractive offer for Sprint, including the Sprint PCS Group wireless operation, which trades as a separate stock. Argus Research analyst Eric Melloul said that Sprint needs to move quickly, whether it aligns with Deutsche Telekom or another firm, to avoid losing out to competitors who are making fast inroads into European and Asian markets. ``In telecom time, when you fall behind it is very difficult to catch up,' Melloul said. ``I think Sprint has six months or so to really make a decision or it will be substantially handicapped. It's a global game and they'll need to partner.' Unfortunately, much of Sprint's current focus internationally lies in crafting an exit strategy for the three-way international alliance between Sprint, Deutsche Telekom and France Telecom called Global One. Sprint wants out of the troubled ownership arrangement but does not want to step back from the asset base built up in Global One, which provides voice and data services to large companies around the world, Sprint's White said. White said that the partners hoped to resolve the matter by the end of the year, if not sooner. ``All three partners are really closely examining their internal strategies while continuing to support Global One and until a new and better ownership structure is agreed to, the three of us have agreed we're going to continue to invest in the operations of Global One,' White said. ``We're not going to walk away and give up. Nobody would do that. Those customers are very valuable.'