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.

Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: KM who wrote (20941)	2/22/2000 11:12:00 AM
From: Rande Is	Respond to of 57584

GBLX buying EXNT [IXnet] and IPI [IPC Com]. . .paying 5.4 GBLX for IPI, which is a ridiculous premium of more than double where IPI is now. . . could be a play buying IPI at a discount to the premium. . .as a long-term way of buying GBLX on the cheap. Under the terms of the definitive merger agreement, 1.184 Global Crossing shares will be exchanged for each IXnet share not owned by IPC and 5.417 Global Crossing shares will be exchanged for each share of IPC. Based on Friday's closing price of Global Crossing shares, the transaction is valued at approximately $62.03 for each of Ixnet's 59.2 million fully diluted shares, and $283.71 for each of IPC's 10.1 million IPC fully diluted shares, or a total of approximately $3.8 billion. This transaction values IXnet at a total of approximately $3.65 billion, and values IPC shares -- excluding the value of the IXnet shares owned by IPC -- at a total of approximately $150 million. Since I haven't yet bought back the GBLX I sold into the gap. . . I may take a chance on IPI upon the open. NOTE!! This acquisition should put tremendous selling pressure on GBLX as arbitrage is so handsome with that big premium. Rande Is