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Technology Stocks : OMPT!!! -- Ignore unavailable to you. Want to Upgrade?

To: Eric L who wrote (389)	2/23/1999 6:58:00 PM
From: Jules Shear	Respond to of 531

Just a take on the delays in OMPT announcement.... I have no facts, no inside info-but my opinion on the delay is a result of looking at what the potential buyers are currently focused on. 1) Mannesmann is really focused on Olivetti/Telecom Italia situation. If Ollivetti sells interest in Omnitel Pronta Italia (to Mannesmann) as a result of purchasing Telecom Italia this is much more financially and stratetically significant than US investment in OMPT. George has very close contacts with the Mannesmann folks and these Italian developments could have caused a delay because of huge cash requirements any purchase of Olivetti shares in Omnitel would mean to Mannesmann. Especially if Mannesmann gets in bidding war for Omnitel with other shareholders (Bell Atlantic, AirTouch, etc.) 2) Vodafone/Bell Atlantic/AirTouch are all trying to figure out their US footprint issue. Until talks between these companies are resolved (positive or negatively) they can't act on OMPT. Do they want national CDMA footprint? or Do they want international GSM footprint? This question must be answered before VOD or BEL acts on OMPT. 3) SBC just recently acquired Comcast and wireless unit is focused on digesting and passing regulatory issues with their latest purchase. Gobbling-up or making strategic investment in OMPT could raise a few regulatory red flags and extra time may be required. 4) WWCA is focusing on spin-off of GSM unit. Investors are sensitive to Voice Stream financial situation if they will no longer have cash cow cellular properties to fund build-out. Even though strategically, it would make sense (WWCA and OMPT are partners in midwestern states) financially-it may make Wall St folks a little nervous. 5) Earlier it was speculated that BT was a potential but they are now out because of potential tie-up with AT&T. I'm sure there are other companies involved (i.e., Bell South) but OMPT's rush to find investor to meet Chicago timeline and high short-term interest financing that is coming due-might be working to their (and investors) disadvantage. What OMPT really needs is patience and when the companies mentioned above can solve their issues-liklihood of bidding war, higher price, etc. will be realized. George and company are in a real bind. On one hand, they have very real financial commitments to meet on alot of debt and thus need cash now. On the other hand, they are very likely sacrificing the longer-term real value of the company by settling for cash now. But I guess as John Keynes said, "In the long-run we are all dead" so maybe $15 a share is not so bad given the circumstances. JMO.

To: Eric L who wrote (389)	3/6/1999 11:03:00 AM
From: Victor Lazlo	Read Replies (1) \| Respond to of 531

Eirc, from the story you linked- <<Wall Street has long viewed the company as a likely takeover or partnership candidate because of its lucrative East Coast market and the shrinking number of independent wireless companies. >> Too bad OMPT has not been able to capitalize on this "lucrative market." I am short ptel, for the second time. I almost shorted OMPT too, but was a bit put off by this "partner" talk, which I have since concluded is probably nonsense anyway. Victor