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

To: Bill Fischofer who wrote (4467)	2/22/2000 6:56:00 PM
From: Teddy	Respond to of 15615

1st of 2 article from The Wall Street Urinal: The Wall Street Journal Interactive Edition -- February 22, 2000 Global Crossing Takeover Deal Fails to Stir Junk Bond Market Dow Jones Newswires NEW YORK -- News that the ever-expanding Global Crossing was acquiring IXNet sent the Global Crossing's stock sharply lower, but its junk bonds stayed put. Its 9.625% senior notes were bid at 97 1/4, unchanged from Friday. The Bermuda-based fiber-optic network company has been on an acquisition spree over the past year, using its stock as currency. Market participants said that was the reason why its stock takes a beating each time a purchase is announced. But in the junk bond market, players have seen Global Crossing emerging from being a small telecom company to becoming one of the world's largest telecommunications network operators. "That is a great asset," said a trader, noting the company's huge assets in its global fiber-optic network. Tuesday, Global Crossing said it agreed to acquire IXNet and its parent company IPC Communications for about $3.8 billion. Separately, bids in the secondary junk bond market were mostly unchanged. The primary market saw no new deals Tuesday.

To: Bill Fischofer who wrote (4467)	2/22/2000 6:58:00 PM
From: Teddy	Respond to of 15615

2nd of 2 articles from The Wall Street Urinal: Dow Jones Newswires -- February 22, 2000 Global Crossing Sees 10-Year Cost Savings Of $1.2B NEW YORK -- Global Crossing Ltd. (GBLX) was willing to spend $3.8 billion for little-known communications company IXNet Inc. (EXNT) and its parent company IPC Communications Inc. (IPI) to gain access to IXNet's financial-services customers, Chief Executive Bob Annunziata said. In a conference call with analysts Tuesday following the deal's announcement, Annunziata said the acquisition "penetrates a key customer base we've been targeting. The strategy that drove (this deal) principally relates to gaining leverage with large corporations." IXNet has business relationships with 620 financial firms worldwide and has a presence in 44 financial centers in 37 countries, Annunziata said. Global Crossing sells space on its worldwide broadband network and derives an increasing amount of revenue from managing other companies' Internet sites. It will split that portion of its business - called GlobalCenter - into a separate company with an IPO later this year. Annunziata said the IXNet acquisition would take Global Crossing deeper into the telecommunications market than it has ever been. "It extends our network not only from building-to-building, but from desktop-to-desktop," he said. Company executives expect the deal to generate cost savings of at least $1.2 billion within the next 10 years. Those savings would include combining capital expenditures and moving IXNet's business from leased networks to Global Crossing's lines. Global Crossing expects that it can begin selling new services to IXNet's existing customers. IXNet Chief Executive David Walsh would continue to lead the IXNet venture. The financial services telecommunications market is worth an estimated $30 billion annually. IXNet supplies a voice and data network that is akin to an extended private network. - Johnathan Burns; Dow Jones Newswires; 201-938-2020;johnathan.burns@dowjones.com

To: Bill Fischofer who wrote (4467)	2/22/2000 11:45:00 PM
From: Bruta	Read Replies (1) \| Respond to of 15615

Couldn't agree more Bill... it is a stroke of genius, and a very aggressive move. You have to be impressed with the unbelievable speed with which the management put together a network of such size and quality starting from junk bonds a couple years ago. WStreet is slow to appreciate telecom mergers (GBLX-FRO, WCOM-Sprint etc) and that gives us plenty opportunities to pick our spots as buyers (as many in this board I bought more today). I would not underestimate the fact that GBLX has three future IPOs to come either... One day the difference between the traditional telco and the fiberoptic telco will become apparent to everybody in WStreet... by then GBLX's global reach will be challenged (maybe) only by WCOM. Very long GBLX