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Technology Stocks : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..] -- Ignore unavailable to you. Want to Upgrade?

To: MangoBoy who wrote (287)	6/2/1999 3:43:00 AM
From: SteveG	Read Replies (1) \| Respond to of 1860

An initial peek from ML's LMGA analyst: Investment Highlights: · Liberty announced it is acquiring The Associated Group Inc (AGRPA & AGRPB, $65, No Rating) in an all stock transaction valued at $3 billion including the assumption of $187 million in Associated debt. · Under the terms of the deal, which is structured as tax-free for Associated shareholders, Associated shareholders will receive 0.6206 (1.2411 post split) Liberty Class A shares and 0.4727 AT&T shares. · Associated owns three key assets, 1) 19.7 million AT&T shares, 2) 14.3 million Liberty shares (11.7 million Class A and 2.7 million Class B), and 3) 21.5 million Teligent shares. · Liberty will issue 11.5 million net new shares under the terms of the transaction. · This transaction is very positive for Liberty, as it is acquiring a 41% control stake in Teligent for $770 million, but is valued at over $1 billion as of Friday's close of $49 per share (Liberty closed at $66 7/16). · Teligent provides fixed wireless services for small and medium size businesses. It is an early stage company with sold growth potential and high capacity (largely internet related and also local and long distance voice). · The Associated Group also owns True Position, a 911 service for cellular customers, a 23.6% interest in a Mexican cellular telephone company and radio broadcasting properties. · This transaction reinforces Liberty's position as “platform agnostic” and should be a major beneficiary of the growth in video and data over the internet. · We strongly reiterate our Buy rating and 12 month price objective of $85-$90 per share based on a sum-of-parts valuation.