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AT&T, Inc. Message Board

  • Jake19Jr Jake19Jr Jan 8, 1998 6:53 AM Flag

    Teleport Deal

    Teleport deal with T worth 11 billion in a stock swap , partial T shares ,Teleport valued at 56 dollars per share. Board meeting today, announce tommorrow. Comments TA? Good deal or Bad deal? Guess we'll get Wall Streets sentiments today.

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    • This is the best move Armstrong could have made. I'm very impressed. It lowers AT&T's transport costs and allows them to cherry pick lucrative top 5% of business accounts. AT&T already has a lot of these customers sewn up for LD, but getting the accounts oflarge multinationals for local, LD, and even more important DATA (the future is data), is where the huge money is. This is what MCI-Worldcom is planning to do.

      My one word of caution is that it will take some time to integrate TCG. Look at Worldcom, it's struggled to get MFS, UUNET &
      all it's other acquisitions integrated. It will be a tough road getting MCI's local assets integrated with MFS,& Brooks Fiber.
      But they have a distinct advantage over AT&T in one respect, they've been spending a lot of money on these local fiber networks
      for a few years now. So they are closer to being able to offer a seamless package to big businesses. With MCI's marketing savvy
      they may steal a lot of customers by being the first one's knocking on the door. Also don't forget that the RBOCs will be more
      formidable challegers in the big business markets when they can offer LD.

      But overall it's a great deal that had to be done. IF AT&T and it's Little Rascal Board had any since it would have made the move a year ago and gotten TCG for 2/3 the price. I won't bash the Board too much. They did have enough sense to get Armstrong & so far they're staying out of his way. Let's hope it continues! As a TCG shareholder, I guess I have a new home.

      Once again very, very impressed with Armstrong. He knows what the right medicine is for AT&T. It may taste bad now $10 -$11B is a lot, but long term it positions AT&T nicely.

    • This deal probably give big T more adevantage for competition!

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