Broadwing - BWNG.otc
UPDATE 2-Dutch investor boosts stake in Broadwing -- SEC
(Recasts, adds options comment, updates share price, changes
dateline from WASHINGTON)
CHICAGO, March 20 (Reuters) - Shares of Broadwing Corp.
<BWNG.O> rose 16 percent and options trading priced in more
gains on Monday tied to speculation that a Dutch media investor
may have takeover interest in the optical network operator,
several option analysts said on Monday.
Broadwing shares closed up $2.08, or 16.38 percent, at
$14.78 on Nasdaq on news that media mogul John de Mol now owns
a 5.03 percent stake in Broadwing. The news came in a document
filed with the U.S. Securities and Exchange Commission.
A representative for Broadwing was not immediately
available to comment on the stock and options activity.
"There is speculation that Dutch media mogul John De Mol
could lead a group or on his own make a bid for this company,"
said William Lefkowitz, an options strategist at brokerage firm
vFinance Investments.
De Mol told the SEC he acquired shares in Broadwing at
between $6.99 per share and $12.65 per share during a 60-day
period ending on March 8.
The 5.03 percent ownership calculation was based on 76.17
million ordinary shares of Broadwing outstanding as of Feb. 28,
according to the filing.
The document was jointly filed with the SEC on Friday by de
Mol and his investment firms, Talpa Beheer BV and Talpa Capital
BV. De Mol owns the Netherlands TV channel Talpa.
MORE CONSOLIDATION?
"Broadwing has been a vague takeover rumor of sorts ever
since the BellSouth takeover," wrote Larry McMillan of McMillan
Analysis Corp in a note to clients on Monday. "Stock volume
patterns are positive."
AT&T Inc. <T.N> agreed early this month to buy BellSouth
Corp. <BLS.N> for $65 billion, a deal that set off a raft of
speculation about additional consolidation in the
telecommunications industry.
Call options on Broadwing were active on Monday, indicating
that some investors were positioning for further strength in
the stock.
A total of 7,250 calls and 2,567 puts changed hands in the
U.S. options market in Broadwing on Monday, according to market
research firm Track Data.
Among the busiest were the call contracts that give the
right to buy Broadwing at $15 a share by mid-April. More than
1,700 April 15 calls traded on Monday. Those calls on the
Chicago Board Options Exchange cost $1.25, up 90 cents from
Friday.
(Additional reporting by Sinead Carew in New York, Julie
Vorman in Washington)
(20Mar06 22:33 GMT
Symbols:
ch;BLS de;BLS de;CIB de;CIBF gb;BSC nl;BLS us;BLS us;BWNG us;T us;VBL
Source RTRS Reuters News
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