IIRC, The terms of the BA/GTE merger agreement with the FTC stipulate that Verizon may re-acquire Genuity once they receive approval to market inter-LATA services in most (or maybe all, someone refresh my memory) of the states where Genuity maintains service points. Of course, if Tauzin-Dingell passes, this will speed things up substantially. :/ -C On Wed, Mar 20, 2002 at 09:16:53AM -0500, Deepak Jain wrote:
On Tue, 19 Mar 2002 16:58:46 -0500 Deepak Jain <deepak@ai.net> wrote:
Since they are defaulting on a $975B note to Verizon, and since they have been saying Verizon does lease dark fiber from them, it would be the easiest thing in the world for Verizon to take control of MFNX.
The real question is will they merge it with Genuity?
1) $975B seems a tad large
2) it was my understanding that Genuity was spun off when GTE merged with BA, a requirement imposed by the regulators.
richard
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1) Agreed, s/B/M
2) I believe Genuity is vastly still owned by Verizon, even though it is publicly owned. I don't remember whether they actually maintained a majority or maintained warrants to buy the majority of the shares, but the idea is the same.
Both Genuity and MFNX have lots of debt held by Verizon, and this is plenty of leverage when one needs to renegotiate their debt covenants.
Deepak Jain AiNET