What if it does get taken over. No way WCOM pays more than $40-$42 per/share, as stock has run up solely on takeover speculation and already incorporates a huge takeover premium. Then it is a stock deal, and WCOM shareholders hate the deal due to 25% dilution, so WCOM trades way down on the news, lowering the implied value on NXTL, i.e. NXTL ends up going down on the takeover news as WCOM shares worth less money. So if WCOM announces deal at $42, WCOm probably gets whacked 10%-20% stock price wise, and NXTL trades down commensurately. Notice every time takeover noise gtets hot and heavy, WCOM trades down $3/$4 just on the rumors. JMHO.
before opening 36. After nato's news, kept going up. Volume came from institutions' trading. Investors started thinking nxtl does not need wcom, without wireless mci will have less profit. Pls go to a local office and you will feel this business is really growing. They are doing the same thing egrp has been doing.
The fact that NT&T's National Japan Newwork serves 33 Million customers on 23 MGHZ is not that surprising. In the U.S., about that many are hooked up on Air Touch's analog systems, which are being upgraded to digital. Digital Compression technology will get even more impressive in the near future. All digital systems can upgrade to new software when it becomes available. The games have just begun! By the way, Asia's most distressed markets (Thailand + Indonesia) are enjoying 6.5 Per Cent gains tonight! Why is Deutsche Telecom raising all that cash?
I bought NXTL for one reason only, rumor of WCOM buyout.
Anyway, take it from someone who learned the hard way, IF a WCOM buyout is annunced and the price moves to within 3-4 dollars of the purported purchase price (based on pooling formula) sit tight until you know the deal will go through.
I was an MCI employee with 8000+ options with strike price of 20-30. BT merger announced 1 year later....in steps Bernie baby. End of story. I had to cash out on most of my stock b/c I left the company, but I still could have held on to plenty and I didn't b/c I "knew" (thought) the eventual sell price.
Bottom line, don't be a damn bit surprised if WCOM acquisition price is in the 42-46 range; however, even if you only bought for short term play, let the transation run its course. Cant you just imagine BT (or some other foreign PTT) trying to screw WCOM on this one? That would be classic.