To:gruetz who wrote (10470)
From: jopawa Wednesday, Apr 4, 2001 12:20 PM
Respond to of 12069
Here's the readers digest version of the CZN 10k and their comments on the sale of the ILEC biz, has this always been the timetable or has it been pushed back 3-6 more mos?:
biz.yahoo.com
On July 12, 2000, we announced a definitive agreement to purchase from Global 100% of the stock of Frontier Corp., which owns approximately 1,096,700 telephone access lines (as of December 31, 2000) in Alabama/Florida, Georgia, Illinois, Indiana, Iowa, Michigan, Minnesota, Mississippi, New York, Pennsylvania and Wisconsin, for approximately $3,650,000,000 in cash. We expect that this transaction, which is subject to various state and federal regulatory approvals, will be completed in the second half of 2001.
To:DWB who wrote (10559)
From: jopawa Monday, Apr 9, 2001 11:28 AM
View Replies (1) | Respond to of 12069
Concerning the close and details of the CZN ILEC sale from the 10k:
Incumbent Local Exchange Carrier:
On July 11, 2000, we entered into an agreement to sell our incumbent local exchange carrier ("ILEC") business segment, acquired in the acquisition of Frontier, to Citizens Communications Company for $3,650 million in cash, subject to adjustments concerning closing date liabilities and working capital balances. We also entered into a strategic agreement with Citizens Communications pursuant to which we will provide long distance services to the ILEC. The transaction, which is subject to both federal and state regulatory approvals, is expected to close in the Summer of 2001. The disposition of the ILEC is intended to streamline our North American operations, re-deploy capital into higher growth businesses, and refine our focus on building and delivering managed services to global enterprises on the Global Crossing Network.
On July 11, 2000, we entered into an agreement to sell our ILEC business segment for $3,650 million. Net proceeds from the sale are expected to be approximately $1.7 billion after repayment of a short-term bridge loan and income taxes. We expect the sale to close by the Summer of 2001.
Based on the above, we expect we will have sufficient resources to fund our operations during 2001. These projections assume we do not dispose of any of our strategic investments, certain of which are subject to significant transfer restrictions.
To:Emile Vidrine who wrote (10878)
From: jopawa Thursday, Apr 26, 2001 10:12 AM
View Replies (1) | Respond to of 12069
Sounds like simply a term of the deal kicked in, it's a done deal now, if CZN was trying to hold up GX they would try to screw them out of more than 150 mil:
The price of the transaction has been adjusted to $3.5 billion to reflect changes in certain terms of the deal, including an agreement for expedited closing of the transaction. The agreement to sell the assets to Citizens was originally set at $3.65 billion.
To:gruetz who wrote (10896)
From: MartinT Thursday, Apr 26, 2001 3:42 PM
View Replies (1) | Respond to of 12069
an issue that threatened to delay the transaction
One of those details nobody was truly responsible for, and CZN saw a small opportunity for, in essence, renegotiating the deal while leaving the contract stand as written. With GX now in the more vulnerable posture, they could request that GX satisfy the shortfall. I would say my estimation for the CZN management team just went up a point. Touche.
Meanwhile, Qwest has taken control of USWest and will continue to milk it....GX has instead taken the cash and is redeploying it....the chase is on, and does not ever finish. This is an important psychological sticking point nowadays: Fully Funded, Or Not? and anything approaching the idea of Fully Funded(?), equates to, Not.
We are one step closer to closure. Does anybody remember how the arbitrage of 10% stayed with FRO (Frontier) up to the last several trading days prior to closure of that deal?? I rather guess the situation WRT GX being fully funded will only be settled once the check is in the bank. Somebody here said the same thing a month or so back....I took note.
Martin Thomas
To:FezKoprucu who wrote (11638)
From: Jason Harlan Monday, Jun 4, 2001 6:00 PM
View Replies (1) | Respond to of 12069
Fez, sorry just got in... called CZN today, they say deal closes June 29th.
Jason |
