Global Crossing agrees to buy Frontier; deal valued at $11.2 billion would offer a foothold in U.S. telecom market
Article Abstract:
International telecom provider Global Crossing Ltd. is leveraging the value of its stock to acquire a larger, more profitable U.S. company, Frontier Corp. Frontier, a local telephone company, had about $176 mil on revenue of $2.6 bil for FY 1998. Its stock closed at $44.625 a share yesterday. Global is offering $62 a share. Global had a net loss of $134.7 mil on revenue of $424 mil last year, but is projection revenue of $1 bil for 1999. The combined company will be positioned to offer multinational companies data and phone service in 159 cities around the world via the latest high capacity fiber optic infrastructure. The immediate challenge will be developing its own local phone system outside the New York state area Frontier serves.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Global Crossing confirms plans to buy Frontier
Article Abstract:
Global Crossing Ltd. plans to buy Frontier Corp. for $11.2 billion. The aim of theis acquisition is to build a global network that would be competition for MCI and AT&T.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Sanmina to buy rival SCI for $4.5 billion; stock deal would unite contract manufacturers for electronics industry
- Abstracts: Global Crossing claims theft, sues Tyco unit. Tyco to buy Lucent power unit for $2.5 billion
- Abstracts: Yahoo! changes tune - now it woos ad firms. IVillage holds ads until after Christmas. OnMoney.com ads to have local flavor
- Abstracts: Vive la technologie. Compaq's visionary is soon bred out of a job. Tyler was just a starlet of the new economy