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

To: M. Charles Swope who wrote (2912)	10/27/1999 5:26:00 PM
From: Teddy	Respond to of 15615

hi M. Charles, i'm not sure why there is still confusion concerning the authorization of a stock buy back, but here's some info for those that are still wondering: If you look back to the SEC filing relating to the last renegotion of the Frontier merger, there is a "History" section. That document is there for (amoung of reasons) your enlightenment. Part of the terms that Frontier requested is that Global Crossing approve a stock repurchase program that could begin as soon as the merger closed. The idea was that, at that time, it seemed very unlikely the Global Crossing would be included in the S&P 500 and there would be millions of shares being sold by Index Funds (everyone in the U.S. has at least 25% of their retirement money in S&P Index Funds, right?). Global Crossing said OK, but we want Frontier Management to agree to not sell any shares for 6 months (and Global Crossing management will also extend their self-imposed lock up for 6 months). Since Global Crossing is now part of the S&P 500 (and the NASDAQ 100), the stock didn't tank after the merger, it went up. They mentioned in the CC today, as most everyone expected, that they didn't buy back any shares and most likely wouldn't because the stock is going up. The other part of your post, that they planned to sell more stock (a Secondary Offering) has absolutely no basis in reality. It is likely that at some time they will use stock to accuire an other company (ies), and they have promised to spin East Asia Crossing off. hope that helps. i'm going to listen to the way cool CC a few more times. everyone should.