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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (33)	7/27/2003 10:21:05 PM
From: Joseph Silent	Read Replies (1) \| Respond to of 7265

Richard, Check out this scam. What are your thoughts? WCOM is in a mad dash to buy Digex for $18M before WCOM gets out of Bankruptcy. Some History. WCOM bought Intermedia (who owned most of Digex) for $6 Billion two years ago. Wcom went bust and dragged Digex down with it. Digex is now a profitable company, andf WCOM owes it $157M. Digex owes intermedia $127 Million. The net $30M owed to Digex plus the $25M or so cash that Digex has, makes it a valuable company, esp since it is now in the black. EDS bought puny Loudcloud for $60M, and Loudcloud has nowhere near the clientlist that Digex has. Digex is one of the few survivors, and according to Tier-1 research, is a "gem". Clearly, WCOM wants Digex to be a part of its future. As things stand, WCOM is valuing Digex at 70 cents a share, after having killed some buyout offers (WCOM folks stack Digex's BOD). Any comments?