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

To: mtnlady who wrote (4476)	1/27/2000 1:02:00 AM
From: Master (Hijacked)	Read Replies (1) \| Respond to of 14638

Lady, this might clarify the reason for the spin-off...Keep in mind that BCE has several other companies in its holdings whose value is not reflected in BCE's current price (probably because they are living in the shadow of the Gorilla which NT has become) Master =============== MONTREAL, Jan 26 (Reuters) - Canadian telecoms giant BCE Inc. (Toronto:BCE.TO - news) said on Wednesday it has its sights set on growth after it completes a planned spinoff of a 37 percent stake in communications equipment maker Nortel Networks Corp.(Toronto:NT.TO - news) In a telephone conference call with reporters, BCE President and Chief Executive Jean Monty said that spinning off the group's roughly C$77 billion ($53 billion) stake in Nortel will help ''unlock'' some C$30 billion of unrealized value in BCE's assets. Monty said BCE's stock has been trading at a roughly C$30 billion discount to the value of its underlying assets. That represents a discount of about C$47 a share, he said. ''With shares that more properly valued, BCE can grow and expand its business using BCE stock as currency for acquisitions,'' Monty said. Monty said the group has no immediate plans to spin off other parts of its telecoms empire, which includes Canada's largest telephone carrier Bell Canada. BCE Chief Financial Officer William Anderson said BCE had applied to Canadian authorities for an advance tax ruling on the proposal. ''We are highly confident that we will receive the tax ruling to justify the transaction. We expect to have that ruling before the end of February,'' Anderson said. Anderson said he foresaw no immediate tax on BCE or its shareholders arising from the plan. BCE has roughly 500,000 shareholders and is considered Canada's most widely held company.

To: mtnlady who wrote (4476)	1/27/2000 2:16:00 AM
From: Francois Bedard	Read Replies (2) \| Respond to of 14638

mtnlady - the chairman of BCE is Jean Monty, ex-Nortel CEO and an extremely smart and most respected businessman. He is doing this to unlock value in BCE which is not being recognized by the market. My view is that this is great if your are a BCE shareholders and it certainly is not a reason to sell BCE. BCE has so many great holdings (Emergis, Teleglobe, Nexia, Sympatico, Bell Canada, BCI, etc) that it is well worth holding for the long run. Granted it does not have the pop of a Nortel but once Monty gets investors to recognize the value (still undervalued with what remains compared to US counterparts)it could outpace Nortel in the short term. My 2 cents. Over and out. Francois

To: mtnlady who wrote (4476)	1/27/2000 3:18:00 AM
From: Jamie	Read Replies (1) \| Respond to of 14638

mtnlady, How do you think BCE got to be the massive telecommunication company that it is? Through poor management and an uninformed CEO. Your ignorance on this issue shines by your post. Who are you saying is receiving BCE shares? BCE shareholders are receiving Nortel. And I can guarantee that shareholders of BCE bought it for BCE, check the data and charts. BCE just freed up a hell of a lot of potential income for growth, this will cause BCE shares to reach their actual share value, which is much higher than the closing price today. Nortel may take a slight short term hit when the BCE shareholders suddenly have Nortel and sell it. I think they are both great companies, and won't sell either. BCE shareholders are in for a wild ride. You remind me of the corn farmer who planted cobs and wondered what happened to her crops the next year.

To: mtnlady who wrote (4476)	1/27/2000 10:39:00 AM
From: telecomguy	Read Replies (1) \| Respond to of 14638

You are totally mistaken mtnlady! BCE is grossly undervalued due to NT dominance --- you would NOT believe the companies they own and control which is being valued at fraction of it's true worth if they were all spun off. BCE will soar! NT will not be affected that much if any....my prediction