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db_ill_invest

06/14/06 4:08 PM

#28712 RE: multivalue #28710

I would personally sell centerline. It has hits it's ebidta goal and the improved profitability is likely there now that one of the main switches (installed last december i believe) is owned by GTE/centerline as well. As for a price as long as it continues to meet it's goals set out this year I would think 2 - 2.5 times revenue/sales would be a reasonable benchmark. It sounds like the man GTE has leading this is a key factor as well, so I would gurantee him going along in th deal for a certain period of time to the acquirer. With likley 100 million in revenue this year, I would think 200 million or more by year end would be reasonable. Just to contuniue discussion. But I'm sure huff has something in store in next month or so to get us on track. He has a vested interest in GTE success not only for his financial gain but his pride as well. Who would want to go out with all the bad press he has had and have it follow him the rest of his life. I think he (and us as tagalongs) will get the last laugh. IMO

DonG

06/14/06 4:10 PM

#28713 RE: multivalue #28710

I agree, multivalue, that there is really no division that would generate alot of interest from potential buyers at the moment. I don't think I would characterize Centerline as in it's "down cycle" but they've said that it's almost reached it's full potential in terms of revs/profits. But it will still be an important tool in the overall vision of a Superhub.

I also don't think it's accurate to say that Globetel Wireless "really needs the other 4 (divisions) to operate". GTE says that it will reach it's "greatest potential" when it's integrated with the other 4 divisions, but I think it can still have a significant impact by itself.

I highly doubt management is even considering putting any one of its businesses on the market. That would fly in the face of Huff's vision for GTE.

All IMHO.

Don