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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Bob Burke who wrote (11574)	4/7/2000 1:19:00 PM
From: Jeff Vayda	Respond to of 29987

Bob: If they wanted to build sats, they would have kept their own business - a merger would have been a better way to go. <SEATTLE, Jan. 13, 2000 - The Boeing Company (NYSE: BA)and Hughes Electronics Corporation (NYSE: GMH) today announced that Boeing will acquire Hughes' space and communications business and related operations for a value of $3.75 billion in cash.> Jeff Vayda

To: Bob Burke who wrote (11574)	4/7/2000 1:58:00 PM
From: Valueman	Respond to of 29987

Those tricky Hughes-ians! Masters of arbitrage! Sell your manufacturing division to Boeing for a high price, buy SS/L for a low price. Brilliant! Except......wasn't there a no-compete clause in the deal? Actually, IF they could pawn off SS/L onto someone, it would not be cheap at 23. That implies a roughly $7.5 billion market cap. They also assume the over $1 billion in debt. That makes $8.5 billion. Sell SS/L(to who???) for $1.5 billion. Now you got $7 billion into it. Is it worth that? That is the question. SPOT's valuation is about $7.5 billion now without debt. Interesting comparison. It WOULD save on legal fees to fight Red Menace charges!