Re: Level 3 Agrees to Purchase Global Crossing

[Dorn Hetzel <dorn () hetzel org>]

On Mon, Apr 11, 2011 at 10:22 AM, Jay Ashworth <jra () baylink com> wrote:

> ----- Original Message -----
> > From: "William Allen Simpson" <william.allen.simpson () gmail com>
>
> >
> http://www.bloomberg.com/news/print/2011-04-11/level-3-agrees-to-acquire-global-crossing-in-deal-valued-at-1-9-billion.html
> > 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.
>
> Let me see if I have that straight.
>
> We're *admitting* in public that the result will be to make prices go up
> for
> customers?  Wow... Justice is going to have a field day with that.
>
> Cheers,
> -- jra
>
> Well, maybe they're just admitting it will slow the rate at which prices go
down :)