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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (4447)	1/26/2000 5:40:00 PM
From: Paul Fine	Respond to of 14638

NT conf call summary: The conf call for NT just finished. It was primarily for the media vs analyst population. Some key points that I took away: 1. This action increases liquidity in NT, but does not dilute earnings per share. 2. There is NO tax implications for current NT shareholders in either the US or Canada. 3. For reference, almost all of the non-BCE NT shares currently outstanding are held by US shareholders, per CFO. 4. After the spinoff, no single shareholder of NT will have more than 2-3% of the "new" NT. 5. NT/BCE apparently talked about the positives/negative impact of this with US analysts prior to this move, and they were very positive. This tells me that the press will be good on this, without getting any downgrades or sell recos. That does not mean that arbs won't try to play the spread; they will. 6. Roth does not see NT moving it's hdqtrs or Research Center out of Montreal to the US. They are "firmly entrenched there". My net take on this(incl. what I heard in BCE conf call)is that this is good for NT. The major positive is that the company's results will be "transparent" because they will be clean. If you couple this with the move to only use US GAAP numbers going forward, the US analysts will be more comfortable with analyzing NT and understanding the results. This is good. Other perspectives? Paul