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Gold/Mining/Energy : JDS Fitel -- Ignore unavailable to you. Want to Upgrade?

To: Chris Stovin who wrote (762)	3/9/1999 1:55:00 AM
From: pat mudge	Respond to of 815

Chris -- Based on this article, you'd think fiber was gold: >>> March 8, 1999 E.spire Up 22% On Takeover Talk; Qwest At 52-Week High By SHAWN YOUNG Dow Jones Newswires NEW YORK -- Continuing a recent surge that analysts said has been fueled by takeover rumors, e.spire Communications Inc. (ESPI) stock leapt 22% Monday in furious trading. After a 14.8% gain Friday, shares of the Annapolis Junction, Md., local phone company rose 1 13/16 to close at 10 1/16 after 6 million shares changed hands, compared with average daily Nasdaq volume of 835,400. E.spire provides local phone service over more than 30 fiber optic networks in southern states. Shares of Qwest Communications International Inc. (QWST), the most frequently mentioned possible suitor to e.spire, hit a 52-week high, bucking the usual tendency for a would-be acquirer's stock to fall, particularly if the deal is expected to be dilutive. But it is not unheard of for the market's enthusiasm over the strategic benefits of a merger to override normal trading patterns. Qwest rose as high as 66 9/16 Monday, past the previous year high of 64 7/16 set Feb. 4. It ended the day up 5 1/8, or 8.4%, at 66 1/2 on Nasdaq volume of 3.9 million, versus a daily average of 3.5 million. The Denver long-distance company has said it wants to extend its local reach. It already has a relationship with e.spire, from which it bought phone network capacity around Washington, D.C., said a Qwest spokesman, who declined to comment about the merger rumor. An e.spire official was not immediately available for comment. Among the other companies that might be interested in buying e.spire are: MCI WorldCom Inc. (WCOM), Teligent Inc. (TGNT) and Nextlink Communications Inc. (NXLK), analysts said. "There are persistent rumors that the company is subject to a takeout offer," said PaineWebber Inc. analyst John Hodulik. "I think there are a lot of potential buyers for these properties." E.spire's shares have been under pressure, dropping from a 52-week high of 23 3/8 on July 8 to a year low of 4 5/16 on Jan. 26. The company has suffered from a perception that it was "long on network but short on management," said BT Alex. Brown Inc. analyst Kevin Moore. The company's relatively weak stock performance makes it vulnerable to a takeover offer and appealingly cheap, said analysts. They said recent deals have valued comparable companies at three to five times the book value of their networks and equipment. E.spire closed Monday at around 2.2 times that value, meaning it could fetch a takeover price of 15 or more if recent trends apply, analysts said. Trading in e.spire options was lively and appeared to reflect speculation that a deal could be in the making. - Shawn Young; 201-938-5248; shawn >>>>

To: Chris Stovin who wrote (762)	3/9/1999 3:35:00 PM
From: pat mudge	Read Replies (1) \| Respond to of 815

I don't know whose cross-connects are involved, but this is definitely fascinating reading. A friend from Cambrian/NT was hired as director of marketing, so I follow fairly closely. news.fiberopticsonline.com