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

To: lazarre who wrote (423)	3/17/1999 5:48:00 AM
From: zebraspot	Respond to of 15615

Global Crossing Confirms To Buy Frontier Corp. Dow Jones Newswires 3/17/99 HAMILTON, Bermuda -- Global Crossing Ltd. (GBLX) confirmed it agreed to buy Frontier Corp. (FRO) for $62 a share in stock in a transaction valued at about $11.2 billion. The combination of the two companies will create the first owned and operated global Internet Protocol-based fiber optic network able to provide customers with integrated worldwide Internet, data, long distance, local telephone and conferencing services, Global Crossing and Frontier said in a joint press release Wednesday. The boards of both companies unanimously approved the transaction. As reported in Wednesday's editions of The Wall Street Journal, the transaction would give Bermuda-based Global Crossing a foothold in the important U.S. market. The company is building a fiber-optic network that will carry voice and data traffic around the globe, and most of the construction so far has involved undersea cables and a pan-European network. Frontier is the incumbent local phone company in Rochester, N.Y., but is also one of the nation's largest providers of domestic long-distance service. Frontier offers Global Crossing a "next generation" network based on Internet technology, not unlike the network Global Crossing aims to build, and also serves small to midsize businesses that could use Global Crossing's network, the Journal reported. The companies said Frontier shareholders will receive $62 a share in Global Crossing stock as long as Global Crossing shares trade within a range of $34.56 to $56.78 a share during a pricing period prior to closing. Outside the collar, Frontier shareholders will receive a fixed number of Global Crossing shares, with 1.0919 shares at the top end of the collar and 1.7939 shares at the bottom of the collar. Shares of Frontier closed Tuesday at $44.625 in New York Stock Exchange composite trading, while Nasdaq-listed shares of Global Crossing closed at $51.50. Global Crossing said it expects the transaction will immediately add to its operating cash flow upon closing. Based on current market prices, Global Crossing shareholders would own two-thirds of the combined company, and Frontier holders would own the remaining one-third. On a pro forma basis, the combined company has a market value of about $30 billion, combined annual sales in excess of $4 billion and earnings before interest, taxes, depreciation and amortization of more than $1 billion.