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Technology Stocks : XO Holdings, Inc. (XOHO - XO Communications) -- Ignore unavailable to you. Want to Upgrade?

To: tech101 who wrote (529)	2/19/2010 10:54:58 AM
From: FJB	Respond to of 615

Have you seen any news on telecomms? XO and GLBC up strongly...

To: tech101 who wrote (529)	2/19/2010 3:58:24 PM
From: FJB	Read Replies (1) \| Respond to of 615

Here is the cause... Friday, February 19, 2010 ET.Level 3 Should Roll Up The Long Distance Market, Analyst Says.By Eric Savitz The time has come for Level 3 (LVLT) to go shopping for additional players in the long-distance telephony business, Oppenheimer analyst Timothy Horan asserts in a research note today that has stirred up considerable investor interest in the group. “In our view, the LD industry needs to restructure given continued over-supply and lack of pricing power,”: he writes. “The improved credit environment, slight pick-up in demand and more reasonable valuations seem to establish a favorable window of opportunity for M&A.” And he thinks Level 3 is the company to do the consolidating. Horan contends LVLT should start things off by acquiring Global Crossing (GLBC), and argues that the company could pay close to a 100% premium to the recent stock price in a stock and cash deal; the next most likely target, he contends, would be XO Holding (XOHO). Horan thinks once Level 3 complete one of those deals, it could move on to a larger target, and buy the long-distance units of Qwest (Q) and/or Sprint (S). One of those larger targets would driver higher synergies, he says, but the analyst thinks it is unlikely they would be the first deals announced. Horan notes that Level 3 last year tried to cut a deal with Qwest - and maybe Sprint as well - but that they could not reach an agreement. blogs.barrons.com