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

To: SecularBull who wrote (6292)	5/25/2000 11:46:00 AM
From: gruetz	Read Replies (3) \| Respond to of 15615

Question on Lockup: I am trying to come up with an explanation for GBLX's poorer performance in recent days viv a vis other bandwidth players like Q and LVLT. Do I remember correctly that a lockup period was extended to May 25 or 26? Perhaps GBLX isn't getting as strong a move today as the others due to anticipation of insider sales. If that is the case, just another reason for long term investors to load up over the next few days.

To: SecularBull who wrote (6292)	5/25/2000 12:49:00 PM
From: tayspop729	Read Replies (1) \| Respond to of 15615

JDN & LoF, Thanks for your responses but apparently my question was unclear...so, if you don't mind, let me try again. (I should note that the intent is for Global Center to be a tracking stock, so that is obviously contributing to my confusion). My use of the word "control" was a very poor choice. Perhaps it might be best if I walk through my understanding of what is to transpire and the more learned at this board could in turn tell me if I'm right, kinda right or rather wrong. :) If I recall correctly, GBLX will be selling a certain number of shares with the Global Centers IPO. I understand that the IPO will serve two primary purposes...one, to unlock the hidden value of the GC asset. Secondly, to provide further liquidity for the purposes of build-out of the business model. The remaining shares, according to earlier reports, will be issued to current GBLX stockholders in the form of a stock dividend (I realize that they did allow themselves some flexibility in the press releases, but this was the crux of the report). Now, I realize that GBLX will continue to own the assets since GC is to only be a tracking stock. As shareholders of the tracking stock, although we will not own the assets, its my understanding that a tracking stock is intended to "track" the hoped for success of the entity in question. Therefore, should the GC business model prove to be as successful as most anticipate, the stockholders can expect to see the price of the stock appreciate in accordance with the successful performance of Global Centers. Now, GBLX still lays claim to ownership of the assets. The current stockholders claim to those assets remain as before but they now also own tracking stock in the GC entity. Apparently the GBLX powers-that-be feel the sum of all of this will outweigh the alternative...that being GBLX spinning off GC (for the same reasons as I outlined above) but retaining ownership of a "significant" number of shares. If I didn't muddy up the water entirely too much, I would appreciate your thoughts. Regards, Scott