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

To: Steven Bowen who wrote (4125)	3/2/1998 6:10:00 PM
From: MangoBoy	Read Replies (1) \| Respond to of 12468

[Takeover Rumors Appear To Have Sparked Rise In Advanced Radio Shares] NEW YORK -(Dow Jones)- Takeover rumors gripping telecommunications concerns appeared to be behind a surge of Advanced Radio Telecom Corp. shares to a 52-week high Monday, analysts said. Such speculation has grown as companies in the industry jockey for position ahead of the entry of local carriers into the long-distance market and a move of locals into long distance. At one point, Monday, the Bellevue, Wash., company's shares traded as high as $14.125, topping the prior high of $13.375 set last March 6. The Nasdaq-listed stock closed Monday at $13.875, up $1.3125, or 8.2%. Volume of totaled 294,300 shares, compared nearly 2 1/2 times the average daily volume of 122,340 shares. Joseph Noel, an analyst from Hambrecht & Quist Inc., said Star Communications Inc. (STRX), Quest Communications International Inc. (QWST), IDT Corp. (IDTC), Winstar Communications Inc. (WCII) and Pacific Gateway Exchange Inc. (PGEX) are among the sector's active issues. Shares of Teligent Inc. (TGNT) have also been rising. An auction of spectrum-wireless-telecommunications licenses by the Federal Communications Commission may also have fueled investor interest in Advanced Radio. The licenses give companies the right to use airwaves to deliver telephone, video and Internet services through an emerging wireless technology called local multipoint distribution service, or LMDS. WNP Communications Inc. was the top bidder after the first round, offering to purchase 31 licenses for $135.8 million. U S West Communications Group (USW) was a distant second, bidding $7.9 million for four licenses. As the prices being offered for licenses in the auction skyrockets, the value of licenses already held by Advanced Radio (ARTT) and others increases. This, in turn, drives up the value of those companies that currently hold licenses. Analyst James Henry of Bear, Stearns noted that Advanced Radio has a national footprint as well as licenses in the United Kingdom and Scandanavia. This asset, he speculated, makes the company attractive to a suitor like WorldCom Inc. (WCOM). "It's more difficult for a single player to duplicate the national footprint of an existing (wireless) player who already has the geographic coverage and licenses in major markets," he said. It would be more logical for a player to take over a company that's already there. Noel said several candidates have been mentioned as possible takeover suitors, including Winstar Communications Inc. (WCII), a front-runner. Such companies as AT&T Corp. (T), Sprint Corp. (FON) and MCI Communications Corp. (MCIC) are others that could benefit from Advanced Radio's technology and licenses. Market watchers said WorldCom's recent decision to snap up Brooks Fiber Properties Inc. (BFPT), AT&T Corp.'s takeover of Teleport Communications Group Inc. (TCGI), MCI's merger with WorldCom Inc. (WCOM), and WorldCom's acquisition of MFS Communications Co. helped fuel the industry-wide takeover speculation. Noel said a federal court ruling in December that struck down portions of the 1996 Telecommunications Act also helped spark investor frenzy in the sector. In a case brought by SBC Communications Inc. (SBC) in Texas, the judge ruled that SBC and the other Baby Bells were being unconstitutionally prohibited from entering the long-distance market. Although the judge has stayed the ruling while existing long-distance carriers like AT&T, appeal, Noel said investors believe the regional bells are closer than ever to moving into the long distance market. "They're knocking on the door," said Noel, who speculates they'll be in the market in 1999. Advanced Radio Telecom Chief Financial Officer Thomas Grina, citing company policy, declined to comment on his company's stock activity or on takeover rumors. He said only that the company plans to issue its fourth quarter and year-end financial results and unveil its strategic assessment Thursday. On average, the four analysts surveyed by First Call Corp. peg the company's fourth-quarter loss at 63 cents a share and its 1997 loss at $2.65. That compares to losses of 80 cents and $3.80, respectively, a year earlier. -Janet Morrissey; 201-938-5400 Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.