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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Scott who wrote (386)	3/16/1999 11:39:00 AM
From: bwtidal	Read Replies (3) \| Respond to of 15615

Cdn Impl Up On Potential Gain From Global Crossing Stake By Ben Dummett TORONTO (Dow Jones)--Canadian Imperial Bank of Commerce's (BCM) stock is sharply outperforming Toronto's banking sub-index, on the potential gains the bank stands to make from its merchant banking investment in Global Crossing Ltd. (GBLX). Canadian Imperial would earn about C$9.80 a share, or a total of about C$688 million, in after tax-profit from selling its stake in Global Crossing, based on Global Crossing's closing price Monday of 56 9/16 on Nasdaq, calculates Roy Palmer, a bank analyst at TD Securities, the brokerage operation of Toronto Dominion Bank (TD). And the holding is worth even more based on Global Crossing stock price Tuesday of 59, which is up 2 7/16 on the day, Palmer added. U.S.-based Global Crossing operates fiber-optic networks for Internet and telecom services. The potential gain for Canadian Imperial represents "an enormous increment in the bank's net worth" that could be used to buy back shares, boost the bank's reserves or finance growth, Palmer said. Canadian Imperial can't sell any of its Global Crossing stake until the fourth quarter, but then it's expected to reduce its holding over a period of time, the analyst said. In Toronto, Canadian Imperial is trading up 1.20 at 39.45, compared with a 0.37% gain in Toronto's banking sub-index. (MORE) DOW JONES NEWS 03-16-99 10:44 AM