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Technology Stocks : (LVLT) - Level 3 Communications -- Ignore unavailable to you. Want to Upgrade?

To: Dean Gaulberry who wrote (680)	4/3/1998 12:39:00 PM
From: Sauron	Respond to of 3873

Clearly the team has value. However it is not that clear that their presence justifies the $6.25 bb of value currently (at $63 LVLT)placed on the startup telecoms biz. After all, Williams Cos. created considerable value and their telecoms biz really only gets $2.5 bb in value(you have to back into this by valuing their energy biz). My view is that 2-2.5 bb in value for the team is more than generous. Adding that to the $2bb in cash, approx $1bb in various minority holdings(listed in my last post)and the coal mine ($200mm). This suggests a total value of LVLT of $5.7bb or $38/share (I am using 150mm shares assuming conversion of the class R in May).