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Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable. -- Ignore unavailable to you. Want to Upgrade?

To: Zorro who wrote (1275)	2/23/1998 5:37:00 PM
From: James Fink	Read Replies (2) \| Respond to of 2063

I am convinced that WinStar wants to buy CVUS. WinStar must pay cash in the auction for the NY "A" Block license. In contrast, WinStar can use its richly-priced stock to buy CVUS. Granted, WinStar already owns 900 MHz of spectrum in New York at 38 GHz. Maybe they don't need anymore bandwidth. Still, I think they would purchase CVUS just to prevent a competitor from having it. Although pure speculation, I think WinStar would be willing to pay 0.40 shares of its stock for each share of CVUS. At WCII's current price of $35, takeout price for CVUS would, therefore, be around $14 per share.

To: Zorro who wrote (1275)	2/24/1998 10:22:00 AM
From: WTC	Respond to of 2063

Zorro, Will the FCC lower opening bid requirements for unbid licenses? This is purely an FCC call, and I expect they will make the decision in a way that manages media and public perception most favorably. Right now, I imagine the FCC can't be too happy either with their press clippings on this auction, or the momentum growth in net auction proceeds. Purely my opinion, of course. I think the FCC will decide that it is in their better interest to hold unbid LMDS licenses in inventory for auction another day, rather than toss them out late in the action, perhaps after many bidders have been shorn of bidding credits in later rounds by failure to keep their bidding activity units up. The public relations nightmare for the FCC would be the media and public perception that the entire auction was rigged in favor of select, wealthy bidders who exploited carefully crafted rules that granted major discounts and effectively excluded erstwhile competition from real small businesses that had worked for years to help establish the regulatory framework for the LMDS industry. (Im thinking of the decision to exclude assets from the small business test, and the late, short-date changes in financing rules that seemed to hurt several small LMDS poineers.) I'm not saying that this is an accurate view of the world, but I think it will be a view that resurfaces and nags the FCC for some time. In the face of such concerns, I would be very surprised to see the FCC sweeten the spoils further for the current participants. Strictly an opinion, of course. In our office pool, officially recorded on a bar napkin a week before the auction started, I selected the $100mil band between $500 and $600 million for net proceeds. (I was less specific in a post on the tread at the same time that I expected the proceeds to be a small fraction of the $4bil Strategis prediction.) We see less and less of the $4bil and the pop values that underpin it, but I notice that hope still springs forth even at the 10th round. I'm still comfortable with my prediction for the auction.