TALK OF MERGER BOOSTS GTE SHARES, OPTIONS.Byline: Dylan Ratigan Dylan Ratigan is an American financial journalist for the business TV channel CNBC, where he co-anchors the 3-4pm ET hour of the Closing Bell from a set overlooking the New York Stock Exchange (the same set used for Squawk on the Street and Dan Morrison Not to be confused with Denny Morrison. Dan, Daniel, or Danny Morrison is the name of several persons:
Trading in shares and options of GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) Corp., the nation's biggest local phone company, soared amid speculation that the company could announce a merger or alliance in coming days. GTE shares rose 1 to 43-3/4 in trading of 1.69 million shares, more than its three-month average daily volume of 1.47 million. Options to buy GTE at 45 in December rose five-sixteenths to three-quarters, almost doubling the value of the contract as a result of the speculation. Some traders said AT&T Corp. could be a possible partner or even a buyer. ``They are holding the idea of a merger with someone out there, and they have a tremendous footprint across the country to bring to the table,'' said Boyd Peterson, a telecommunications analyst at the Yankee Group (the Yankee Group, Boston, MA, www.yankeegroup.com) A major market research, analysis and consulting firm founded in 1970 by Howard Anderson. It provides general consulting and strategic planning in the computer and communications field. in Boston. GTE said it doesn't comment on rumors or speculation. GTE, which has its California headquarters in Agoura Hills, shot ahead of rivals in March when it became the first large local phone company to enter the $70 billion U.S. long-distance industry. Since then, it has been dwarfed by four megamergers worth a total of about $75 billion that promise to alter the telecommunications landscape. Since March, Bell Atlantic Corp. said it will buy Nynex Corp.; SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. Communications Inc. said it will purchase Pacific Telesis Group; Worldcom Inc. shook hands with MFS MFS Medicare fee schedule Communications Co.; and British Telecommunications Plc said it plans to buy MCI Communications Corp. Analysts suggest GTE could be next. GTE is having its annual meeting with Wall Street analysts in Norwalk, Conn. The meeting is scheduled to finish today. |
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