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Technology Stocks : Excel Communications -- Ignore unavailable to you. Want to Upgrade?


To: Miami Phillips who wrote (2715)6/16/1998 8:37:00 PM
From: Rob S.  Read Replies (1) | Respond to of 2806
 
The more I look at the Teleglobe merger, the more I like it.

Teleglobe is a large international wholesaler of telephone and internet capacity while Excel is primarily a domestic marketer of telecom products with no current internet and limited international offerings. There are very few overlaps and great "syngergies" of the two operations.

Kenny said that he is most excited about the top end sales growth potential rather than cost savings of the deal. Teleglobe will bring over 20 new products to Excel. Some of these will be offered on a "preferred customer" basis to Excel prior to the merger being final. Products may include international calling cards and reduced international rates.

This deal will allow Excel to propel into the international telecom market very rapidly compared to trying to do it in-house.

Teleglobe has the second largest international telecom & internet backbone capability - second only to AT&T!!! Fiber optic and satellite connects 165 countries. They now supply 109 ISPs - all of them outside of the U.S. but plan to open up ISP service in the U.S.

Teleglobe has operating licenses in 18 countries including all of the G7 nations. They have switches in the U.K., Germany, Japan and plan them for other countries. Teleglobe/Excel can quickly become a large capacity supplier of telecom and internet services throughout Europe and into Asia - vast new markets for the combined company to tackle.