Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Radio Telecom (ARTT) -- Ignore unavailable to you. Want to Upgrade?

To: SteveG who wrote (720)	6/2/1999 3:09:00 AM
From: SteveG	Read Replies (1) \| Respond to of 1176

pretty dang quiet for such a big news day- as most probably know, this deal creates ~32MM new shares (approximately doubling the current fully diluted float). So QWST and partners bought ~50% of the company for about $250MM, valuing the company at ~$500MM. ~64MM fully diluted shares yields ~$7.9/share. This is coincidentally consistent with the convertible preferred exercise price of ~$8/share. [Note, I'm pretty sure that Oak Investment Partners is the same "Oak Partners" who were known to own and risk-arb-short WCII converts] On the plus side, the strategic relationship with QWST is a major boon for ART, and for BBFW in general. The normal BBFW (TGNT/ARTT/WCII) comments from BTAB's Bo Fifer will likely be out in the morning, as Bo was traveling today. Worth noting (for comparison purposes) is that the while ARTT will spend $$ on leasing QWST fiber, WCII (through WMB) owns theirs. BTW, this takeunder is exactly the concern I had for ARTT. And the convertible nature of the deal could add riskless shorting volatility ala WCII. Note: Hirsch canceled for the BTAB high yield conference last friday, and will still not be attending. Net-net, while ANY deal that allowed survival would have been a positive for ARTT, the strategic relationship with QWST seems to offers a lot. techstocks.com