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

To: Howard C. who wrote (4675)	3/3/2000 10:16:00 AM
From: Jeffrey D	Read Replies (1) \| Respond to of 15615

Deutsche Telekom Should Buy Global Crossing, C&W, Analysts Say By Andrew Bulkeley Deutsche Telekom Should Buy Global Crossing, C&W, Analysts Say Bonn, March 3 (Bloomberg) -- Deutsche Telekom AG should pursue Global Crossing Ltd. or Cable & Wireless Plc to gain access to the U.S., not Qwest Communications International Inc. and U S West Inc., analysts and investors say. Europe's largest phone company made separate bids worth more than $80 billion for Qwest and U S West, USA Today reported this week. But the former German monopoly would do better to seek other ways into the largest telecommunications market, analysts said. ``Global Crossing would be the better choice,' said Josef Scarfone, who includes Telekom shares among the $15 billion he helps manage at Frankfurt Trust. ``The deals are coming and they will happen in the next weeks, not months.' Telekom needs new markets to offset growing competition at home, where more than 80 smaller rivals have snatched a third of its long-distance business and crimped prices. Telekom also must beef up to compete with rivals who are building global networks to serve the fast-growing Internet and business-data markets. The company -- which has $14 billion in cash and later this year will issue separate shares in its online services business, Europe's largest, and mobile-phone unit -- has talked to Global Crossing about a merger, a person familiar with the talks told Bloomberg News. Telekom already uses Global Crossing's worldwide network. ``I believe that a global network is the way to go, and that's what Global Crossing already is,' said Peter Treadway, an analyst at Ryan, Beck & Co. in Livingston, New Jersey. ``Then you need to load customers onto that network, and there they are in the third-largest economy in the world -- Germany.' Too Expensive? A merger with Denver-based Qwest would give Telekom a U.S. network, advanced data and Internet services and a local carrier, Denver-based U S West, which owns wires into homes in 14 states. Those cables can be upgraded to provide video and fast Internet access. Still, analysts said they're concerned Telekom would have to pay too much for U S West, which was recently acquired by Qwest. Telekom also might inherit regulatory headaches common with local U.S. carriers. ``Qwest isn't a candidate that I'd put at the top of the list,' said Stephan Droxner, an analyst with Landesbank Baden- Wuerttemberg in Stuttgart, Germany, who has a ``market perform' rating on the shares. Cable & Wireless Plc, the U.K.'s second-largest traditional phone company and one of the largest carriers of U.S. Internet traffic, is also often tipped as a likely Telekom partner. ``Every foreign acquisition is welcome,' said Theo Kitz, an analyst with Merck Fink in Munich. ``They've got very little outside Germany.' British Telecom Plc, the U.K.'s largest phone company, is also a potential target, though Kitz said it would be awkward because Telekom would then have to sell One 2 One Ltd., the U.K. cellular phone company it bought last year. Telekom shares rose as much as 4.9 percent, or 4.82 euros, to 104.2. In the last six months, the shares have risen 147 percent, making them the fifth-best performer in the Dow Jones Europe Stoxx 50 index.

To: Howard C. who wrote (4675)	3/3/2000 10:20:00 AM
From: TechMkt	Read Replies (2) \| Respond to of 15615

Merril is giving it's customers a chance to jump into GBLX before it takes off. That's all the news behind their downgrade. Fez

To: Howard C. who wrote (4675)	3/3/2000 10:23:00 AM
From: Marty R	Read Replies (2) \| Respond to of 15615

I swear sometimes Merril Lynch analysts are idiots. At a time when the share price is almost sure to go up they downgrade it. But, I'll bet if it were to run up into the 100's they'd wait until then to upgrade it. In my limited experience the timing of their analyst's are generally poor and can be used as a contrarian indicator. Even though there's often a knee jerk reaction to what they say. Still, if I were to guess, with all the news swirling around GBLX I wouldn't expect much reaction to this downgrade. Regardless of the varying opinions about merger talks I believe it's short term effect drives the stock price up. And regardless of the outcome (assuming we don't sell) I've thought all along the long term potential for GBLX is huge.

To: Howard C. who wrote (4675)	3/3/2000 10:32:00 AM
From: barry fowler	Read Replies (1) \| Respond to of 15615

>> Merril Lynch ... Does it matter? To some people, maybe. I never listen to info. from such sources. Think about it -- why would they be spewing out such info. for free?