Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: limtex who wrote (3707)	2/4/1998 10:41:00 PM
From: DubM	Read Replies (1) \| Respond to of 12468

February 4, 1998 Perennial Takeover Rumors Propel WinStar Shares By BRIAN STEINBERG Dow Jones Newswires NEW YORK -- Once again, rumors of a possible takeover have driven shares of wireless phone service provider WinStar Communications Inc. (WCII). The New York-based company has issued no news to the market in recent days - a rarity. Yet its stock soared Tuesday to a 52-week high. In a research note Wednesday, analyst W. Jack Reagan of Legg Mason Wood Walker Inc. attributed the phenomenon to takeover speculation. "We suspect rumors of a deal may be the propelling force behind the stock price," he added. WinStar jumped 3 15/16 to 37 Tuesday on heavy volume of 2.3 million shares, compared with a daily average of 1.1 million. Earlier that day, the Nasdaq-listed shares hit a new 52-week high of 37 5/16. The stock closed at 36 1/8, down 7/8, or 2.4%, on volume of 1.5 million. Various trading tales have the company being bought out for anywhere from $45 to $60 a share. One rumor has a deal being completed by next week. Still, analysts pointed out that WinStar Chairman and Chief Executive William Rouhana has repeatedly expressed in recent months his desire to remain an independent operator. In a December interview, he described the company's wireless licenses as a "national treasure" that must be developed carefully. Observers have speculated for a long time that AT&T Corp. (T) has been looking at WinStar, which hopes to offer local phone service by transmitting calls via the microwave spectrum. But some analysts believe WinStar has yet to show its system is complete. "They are in the early build-out phase," said Ken Hoexter of Goldman Sachs & Co. For a takeover to occur now would be "kind of a bet on what's to come rather than on what's already there." Legg Mason's Reagan wrote that large companies might wait "until commercial service becomes available in many markets" before committing to one long-term relationship with a wireless provider such as WinStar. Companies like Teligent Inc. (TGNT), BizTel, a unit of Teleport Communications Group Inc. (TCGI) and Advanced Radio Telecom Corp. (ARTT) also provide the novel wireless service but are not as far along in their business plans. "They do provide that wireless access to the end user that is so needed by various companies," explained Hoexter. And the rumors, no doubt, will continue to linger. -By Brian Steinberg; 201-938-5218; brian.steinberg@cor.dowjones.com