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

To: gauguin who wrote (8874)	10/22/1998 3:47:00 PM
From: ziad daoudi	Read Replies (2) \| Respond to of 12468

Hot Stocks Thu, 22 Oct 1998, 3:41pm EDT WinStar Shares Rise on Network-Expansion Financing From Lucent New York, Oct. 22 (Bloomberg) - WinStar Communications Inc. shares rose as much as 31 percent after it received $2 billion in financing and phone equipment from Lucent Technologies Inc. to expand its wireless phone network. WinStar shares rose 5 1/16 to 24 5/8 in midday trading of 4.7 million. Earlier, they rose as high as 25 5/8. It was the 15th-most-active stock. New York-based WinStar said it will use the money to accelerate the construction of its network in 40 markets and expand into international markets. That eliminates investors' biggest concerns about WinStar, one analyst said. ''They are fully financed for life,'' said Jeffrey Hines, an analyst at BT Alex Brown Inc., who has a ''buy'' rating on WinStar. With the five-year agreement, WinStar's expanded network will provide local and long-distance phone services, as well as high-speed data, Internet and information services. ''This is a defining moment for WinStar,'' said William Rouhana Jr., the company's chairman and chief executive. ''We now have the opportunity to aggressively plan for our expansion into the top 50 domestic markets and into the international marketplace as well.'' WinStar didn't reveal the terms of the financing or say how much revenue Murray Hill, New Jersey-based Lucent will get from the agreement. The agreement allows WinStar to tap the funds in increments of $500 million or less. Lucent couldn't immediately be reached for comment. Rouhana said WinStar already had financing to build its network to 40 cities and achieve positive cash flow by 2000. Cash flow is earnings before interest, taxes, depreciation and amortization. Lucent will provide the network design, integration and buildout services to WinStar as well as technology and equipment. Lucent also will test WinStar's network and integrate it with equipment from other manufacturers. Lucent, the largest maker of phone equipment in North America, fell 1 3/8 to 77 5/8. --------------------------------------------------------------------------------