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To: elk who wrote (7178)4/24/1998 3:53:00 PM
From: Michael Ulysses  Read Replies (1) | Respond to of 7703
 
Instant market power.

''When mergers happen, there is always discussion about synergies and economies of scale. In this case, with Qwest's wholesale focus and LCI's retail focus, those are inherent. But make no mistake, acquisitions at a premium like this one are all about achieving instant market power,'' said Freymuth. ''LCI's own acquisition of Corporate Telemanagement at 17 times monthly raised eyebrows in 1996. Now, when long distance multiples are declining, LCI itself has sold for a multiple of 32 times monthly revenue. A major reason for this is that together they are suddenly a superclass telecommunications carrier.