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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (19718)	3/25/1999 9:48:00 AM
From: Zakattack	Respond to of 90042

DELL... Heavy buying going on! PAIR, FORE, and AMMB moving... Z

To: Tim Luke who wrote (19718)	3/25/1999 9:51:00 AM
From: Glenn	Respond to of 90042

Global One telecom group close to collapse-NYTimes Global One telecom group close to collapse-NYTimes NEW YORK, March 25 (Reuters) - Global One telecommunications consortium, which comprises Sprint Corp. <FON.O>, France Telecom <FTE.PA> and Deutsche Telekom <DTEG.F>, is close to collapse, the New York Times reported in its Thursday issue. It said a pact to dissolve the venture could come as soon as in six weeks. Citing executives close to the venture, the paper said Sprint chairman William Esrey sent a letter three weeks ago to Ron Sommer and Michel Bon, the chairmen of Deutsche Telekom and France Telecom, respectively, saying the group was failing in its current state and the companies should try to resolve their problems within the partnership. The break-up of Global One would leave Sprint open to an acquisition by another communications giant and could push Deutsche Telekom to seek international purchases, the newspaper reported. The consortium was created in 1996 to offer large multinational corporations complete telecommunications services. The termination of the pact would mean large financial penalties for the company that initiates a break-up, the executives told the newspaper. However, they told the New York Times that the letter from Esrey suggested that Sprint would like to end its role in the group. Deutsche Telekom and France Telecom together own 20 percent of Sprint. Global One has become a thorn in Sprint's side in two main ways, executives close to the venture told the newspaper. The consortium never ran smoothly, with the companies never completely agreeing on which firms should assume which responsibilities in the venture. The three companies also never fully integrated their networks, the executives told the newspaper. Another problem is Sprint's realisation that Deutsche Telekom and France Telecom are unlikely to buy the remaining 80 percent stake in the U.S. phone company that they do not already own, executives close to the group told the newspaper. As telecommunications firms scuttle for partnerships to survive the recent changes in the industry, Sprint has also been seeking a partner. However, the European companies have all but decided not to buy Sprint, with the sheer amount of capital required seen as a hurdle, the executives told the newspaper. Deutsche Telekom has been considering several options to expand its presence, either alone or in continued partnership with France Telecom, executives told the newspaper. Sprint's stock closed down 9/16 at 95- on Wednesday. A Sprint spokesman was not immediately available for comment on the report. REUTERS Rtr 01:33 03-25-99 Copyright 1999, Reuters News Service