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Technology Stocks : Verizon Communications (VZ) -- Ignore unavailable to you. Want to Upgrade?

To: Alfredo Nova who wrote (38)	8/25/2000 10:57:42 AM
From: Rob Preuss	Read Replies (1) \| Respond to of 2198

Hi Alfredo, I don't think VZ shareholders will get any shares from this wireless IPO. But I expect we'll benefit from it nonetheless... Check out this article: thestreet.com Now, as this article points out, VZ Wireless is a much stronger company than AT&T Wireless... much better cash flow. Yet AT&T Wireless was able to raise $11.5 billion. I hope VZ Wireless raises a boatload of cash in this IPO and I hope they do it at the highest possible IPO price. Recall that VZ owns a big piece of VZ Wireless. For this IPO, they'll only sell off a small piece of VZ Wireless to the public... so the percentage of VZ Wireless that's owned by VZ will be reduced a little, but not a whole lot. At the same time, VZ Wireless will end up with all that cash in its pocket... making VZ Wireless worth more. In essence, the IPO will mean that we'll own (indirectly) a somewhat smaller piece of a somewhat larger pie with no net change... except for the fact that VZ Wireless will be able to invest all that cash into more infrastructure build-out and thereby grab more market share and grow faster than its competitors, and that extra growth will be good for us. None of this happens overnight. We're steering oil tankers, not speedboats. But I look upon the VZ Wireless IPO and the Northpoint acquisition as good strategic moves for VZ investors... ones that should help get us to those promised growth targets. Cheers, Rob Another good article: redherring.com