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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: pfierb who wrote (2530)	10/11/1999 7:58:00 AM
From: Craig A	Read Replies (1) \| Respond to of 15615

Ialso subscribe to Spear. Bull-Market Report still strong buy. They were pounding the table at 25.

To: pfierb who wrote (2530)	10/11/1999 7:58:00 AM
From: John Carragher	Respond to of 15615

Dow Jones Newswires -- October 11, 1999 Dow Jones Newswires Global Crossing Defends GBP1B Price Tag For Racal Telecom LONDON -- U.S. telecommunications group Global Crossing Ltd (GBLX) Monday defended the GBP1 billion it paid for Racal Electronics PLC's (U.RCA) Racal Telecom's unit, saying it will yield around $450 million a year in cost savings and increased revenues. The Financial Times, in its Lex column Monday, said that at five times historic earnings the price for the fiber optic network looked steep. Global Crossing U.K. competitor Energis PLC (ENGSY) had also been interested in buying the unit, the newspaper reported, but had been prepared to offer only GBP750 million. "I think that we paid a fair price: it's extremely valuable to us," Global Crossing Chief Executive Bob Annunziata told Dow Jones Newswires. "When you look at the synergies that we will receive on the cost savings, as well as the Racal Telecom network that plugs into the Global Crossing network on a worldwide basis, we expect tremendous revenue growth," he said. "It gives us a major jump start in the European marketplace." The deal, being funded by Global Crossing in cash, would yield cost savings and revenue enhancement with a net present value of close to $450 million a year, he said. Annunziata said the deal would help the company achieve its target for year-on-year EBITA growth in the low 30% bracket. Annunziata said that the group was eager for further expansion. Global's main focus going forward was Latin America and Asia, he said. In Europe, the group planned more add-on type buys, he said. No job losses among Racal Telecom's 1,300 staff are expected, he said. -By Catherine Taylor; 44-171-842-9295; catherine.taylor@dowjones.com