12 Apr
2011
12 Apr
'11
8:38 p.m.
On 4/11/2011 10:13 AM, William Allen Simpson wrote:
http://www.bloomberg.com/news/print/2011-04-11/level-3-agrees-to-acquire-glo...
The deal will combine two unprofitable companies with total revenue of $6.26 billion as of last year, and cut annualized capital spending by about $40 million, according to the statement. It will also help reduce the pressure on prices, which have declined by as much as 30 percent a year in the industry, said Donna Jaegers, an analyst at DA Davidson & Co.
“This is what telecom has needed for a long time,” said Denver-based Jaegers, who recommends buying both stocks. “You have way too many players.”
If L3 merges GBLX in as well as they did Broadwing...the little guy stands to do pretty well.