Path: utzoo!attcan!uunet!cs.utexas.edu!mailrus!accuvax.nwu.edu!nucsrl!telecom-request
From: claris!netcom!zank@ames.arc.nasa.gov (Mathew Zank)
Newsgroups: comp.dcom.telecom
Subject: Re: GTE/Contel Merger Announcement
Message-ID: <9719@accuvax.nwu.edu>
Date: 14 Jul 90 20:41:56 GMT
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X-Telecom-Digest: Volume 10, Issue 483, Message 4 of 12


Standard & Poors have said that they may downgrade GTE's bonds and and
other debt (this is bad news for GTE bond holders because the bonds
will drop in price) S&P says it will do this because the merger will
make GTE the 2nd largest cellular company, but GTE will take on a lot
of debt from Contel Cellular because the acquisition of McCaw Cellular
by Contel. Contel has not earn a dime on this yet in 1989 Contel lost
12.5 million dollars on the Cellular operations.