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Global Business News Roundup: Key Deals, Executive Appointments, and Financial Results

Strategic Insights

— 2 min read

Global Crossing has revealed that it is pursuing a standalone bid for Frontier Corp. in a deal worth $11 billion, while ceding its battle for US West to Qwest Communications. The news comes as part of a shareholder letter from Global Crossing, marking the end of the takeover fight between Qwest Communications and Global Crossing. Meanwhile, Qwest's $36 billion bid for Denver-based US West is set to proceed, with US West facing a breakup fee of $420 million. NeoPharm, Inc. has received a $2 million milestone payment from Pharmacia & Upjohn, Inc. as part of its agreement for Liposomal Encapsulated Paclitaxel and Liposomal Encapsulated Doxorubicin. Cambridge Technology Partners has appointed Jack Messman as its new president and chief executive officer, replacing James K. Sims who held the position since the company's inception in 1991. Citigroup Inc. has reported a 21 percent increase in operating profits to $2.48 billion, exceeding expectations due to strong performance in its consumer business. The company earned 71 cents per diluted share in the second quarter, surpassing Wall Street's forecast of 65 cents.

Key Takeaways:

  • Global Crossing is pursuing a standalone bid for Frontier Corp. in a deal worth $11 billion, while ceding its battle for US West to Qwest Communications.
  • Qwest's $36 billion bid for Denver-based US West is set to proceed, with US West facing a breakup fee of $420 million.
  • NeoPharm, Inc. has received a $2 million milestone payment from Pharmacia & Upjohn, Inc. as part of its agreement for Liposomal Encapsulated Paclitaxel and Liposomal Encapsulated Doxorubicin.
  • Cambridge Technology Partners has appointed Jack Messman as its new president and CEO, replacing James K. Sims.
  • Citigroup Inc. has reported a 21 percent increase in operating profits to $2.48 billion, exceeding expectations due to strong performance in its consumer business.
  • The company earned 71 cents per diluted share in the second quarter, surpassing Wall Street's forecast of 65 cents.
  • Ernst & Young LLP has signed a lease for 122,000 square feet in a newly completed building in Tysons Corner, Virginia, consolidating its local offices.
  • American Online is offering free internet service in Britain and has plans to extend the service to other parts of Europe.

Statistics:

  • $11 billion: The value of Global Crossing's standalone bid for Frontier Corp.
  • $36 billion: The value of Qwest's bid for Denver-based US West
  • $420 million: The breakup fee faced by US West if Qwest's bid is rejected
  • $2 million: The milestone payment received by NeoPharm, Inc. from Pharmacia & Upjohn, Inc.
  • 21 percent: The increase in operating profits reported by Citigroup Inc. in the second quarter
  • 71 cents: The earnings per diluted share reported by Citigroup Inc. in the second quarter
  • 65 cents: The forecast earnings per diluted share for Citigroup Inc. by Wall Street
  • 122,000 square feet: The size of the leased office space for Ernst & Young LLP in Tysons Corner, Virginia

Sources:

  • Source 1: Global Crossing shareholder letter
  • Source 2: Qwest Communications press release
  • Source 3: NeoPharm, Inc. press release
  • Source 4: Cambridge Technology Partners press release
  • Source 5: Citigroup Inc. press release
  • Source 6: Ernst & Young LLP press release
  • Source 7: News Provided by COMTEX (http://www.comtexnews.com)

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