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Technology Stocks : NHC COMMUNICATIONS (TSE:NHC) acquiring THE FIBER COMPANY -- Ignore unavailable to you. Want to Upgrade?


To: Lalit Jain who wrote (469)9/6/2000 8:18:20 AM
From: hugh thorne  Read Replies (1) | Respond to of 856
 
Regarding TSTN, one doesn't raise US$ 200 million plus for advert and promo. Further, they don't eat capital through infrastructure like telco's etc.

It therefor seems only logical that the war chest is for acquisition purposes. Who the targets are, who knows, but i think they are making the first move to consolidate some part of the sector as soos as possible before valuations creep too high.

As noted by Barry Sine, there is room for both TSTN's equip and for NHC. He goes as far as saying they are almost after seperate markets. An acquisition of NHC would seem to be a perfect fit based on his report.

Share for share would be about CDN$ 95 or so - anyone who wants to hold out above that is a hog, and we know hogs get slaughtered!