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

To: MDGO who wrote (6484)	6/13/2000 2:00:00 PM
From: matt dillabough	Respond to of 15615

DJ Global Crossing Down 5%; Some Analysts Cite Equant Talks Dow Jones News Service ~ June 13, 2000 ~ 11:02 am EST (MORE) DOW JONES NEWS 06-13-00 11:02 AM DJ Global Crossing Dn -2: Analysts Also Cite Nasdaq Drop By Christine Nuzum NEW YORK (Dow Jones)--Shares of Global Crossing Ltd. (GBLX) stretched their Monday decline following a report that the networking company is competing with France Telecom (FTE) to acquire Dutch data network operator Equant NV (ENT). Citing people close to the companies, The Wall Street Journal reported Tuesday morning that Equant is in talks that could lead to a $10 billion buyout by France Telecom or Global Crossing. After a 5.8% decline Monday, Global Crossing was recently down 1 1/8, or 3.9%, at 27 1/2 on volume of 5.5 million shares, compared with a daily average of 13.6 million. While some analysts said the stock is simply sliding with the rest of the Nasdaq, others pinned the decline to worries over the reported buyout bid, emphasizing that most telecom stocks have been unscathed. The Nasdaq Composite Index had recently lost 23.72, or 0.6%. While tracing some of Global Crossing's Tuesday stumble to the overall market, analyst Eric Melloul of Argus Research said several concerns over a bid for Equant were also hurting the stock price. Meanwhile, France Telecom American depositary shares were recently down 15/16, or 0.6%, at 152, while Equant was up 5 5/8, or 13.3%, at 48. (MORE) DOW JONES NEWS 06-13-00 11:36 AM =DJ Global Crossing Dn-3: Analyst Cites Price, Other Worries "There are some concerns that Global Crossing will use the weak currency to make an acquisition," Argus Research's Melloul said. "Global Crossing shares are not richly valued now; $10 billion could be a pretty hefty price." After sliding from above 60 last May, Global Crossing shares briefly hit that level again in February before pulling back with the rest of the Nasdaq. While hefty, $10 billion may be insufficient to wrest Equant away from the other suitor's grasp. "It seems France Telecom is much ahead in terms of negotiations," Melloul said. "If Global Crossing were to seriously want the Equant assets, they would have to make a higher offer." And, he added, Global Crossing is building its own fiber optic network in Europe, which, when complete, will be better than Equant's. Acquiring Equant would give Global Crossing a customer base and a large revenue source in Europe until the network is built, he said. Global Crossing investors may be losing patience with the company's costly projects and stream of losses, said analyst Philip Wohl of S&P Equity Group. "It seems like people want to see results now," he said. -By Christine Nuzum, Dow Jones Newswires; 201-938-5172; christine.nuzum@ dowjones.com (END) DOW JONES NEWS 06-13-00 01:06 PM