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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Gary H who wrote (8474)	11/13/2000 4:06:10 PM
From: Ian@SI	Read Replies (1) \| Respond to of 14638

Prior to setting a date for spinning NT out of BCE, BCE was valued at close to nothing once the value of the NT shares was considered. JM was in the process of acquiring several companies: Teleglobe, the CTV network, Thompson, ... To use BCE stock as currency, he would have given away 80% of Bell Canada ($20B value a couple years ago), about 80% of BCI, Telesat, Sympatico, Expressvu, 25% of Look Communications, ... Instead, he chose to give NT to its rightful owners, BCE's shareholders, thus unlocking some of BCE's hidden value. And he's put the market on notice with the latest reorg, that he's prepared to follow a similar route if he doesn't see an appropriate valuation given to BCE's stock. Re the did he see it coming: IMO, at that time, no. However, his use of BCE's NT holding as collateral to secure a reduction in rate charged for a loan used to retire high interest debt may well have been prescient. ... or it could have just been serendipity. Unless Jean advises the public, we may never know for sure. Ian.