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pepperxn
join:2001-02-21
| reply to voipdabbler
Re: Don't think this is the right match.
said by voipdabbler  :Windstream is a much smaller, more regional company. Frontier has a much larger nationwide presence, spanning both coasts and all the hinterland inbetween. If I were to look at these two for merger, I'd say Frontier would be acquiring Windstream. Unless their management is extremely good, I'd suspect that Windstream would possibly have problems coping with the broad geographical reach of Frontier. If rural acquisitions are hot, and let's face it--analysts try to drive their predictions, I'd say companies the size of Windstream are the targets. Frontier is large enough, I think it'd take a small company linking up with an capital investment group (very bad for customers since this type of acquisition generally means quick turn around sale, even breaking up the company acquired to the detriment of service). If Windstream wants to acquire Frontier, then they're in talks with a capital investment group and I suspect the only buyers with pockets deep enough to buy a newly acquired Frontier merged with Windstream and the assets of a capital investment group would be a baby bell (maybe Quest, AT&T or Verizon). Based on coverage, yeah, Windstream is more regional. But buying Frontier would give them a more national rural footprint. From what I read Windstream's management handled their mergers good. The news started because last month something expired (don't remember what) that would allow a merger. The buyout would be done with a stock swap. I could only see Qwest buying the newly merged company, otherwise the new Windstream will be on its own. Don't forget there's Embarq, CenturyTel, and the rest are pretty small. These days, in order to survive you gotta merge. | |
voipdabbler
join:2006-04-27
Kalispell, MT
| My point is Windstream doesn't have the assets that Frontier does. If they're truly looking to acquire Frontier, they're probably in talks with a capital investment group(s) that would go in on the deal and provide the financial resources that Windstream lacks. If that's the case, then the capital investment group most likely will want a fairly quick return on their money so they'd probably start pressuring for the merged company (Windstream/Frontier) to be sold no more than 1-2 years out (Alltel, which was acquired by a capital investment group, was only held for a year before being sold off). If you merge Windstream, which is really rather small when compared to Frontier, the company starts to be large enough that those with deep enough pockets to buy it are a fairly small group--the baby bells. Contrary to what others think, I suspect a merged company would be of interest to some of the baby bells, especially if they want to roll out WIMAX (don't expect to see 3G outside urban areas).. | |
stellgod
@alltel.net
| Windstream is NOT the smaller company. Windstream spun off the WIRELESS portion which resulted in Alltel, then merged with Valor which resulted in Windstream. Windstream sells all Wireless it acquires through mergers/acquisitions. Windstream would be the top dog if a deal were to be reached between Windstream/Frontier. Windstream stock restriction were what ran out in July for the guy above. Also, in regards to WIMAX, I do not foresee that as going anywhere. Which company and city was it that recently tried to get rid of their WIMAX? Verizon and Phildelphia I think? When the company tried to ditch the WIMAX, they were sued by the city. | |
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