Phone+ Rumor Mill

from Phone+ mag: "On the heels of two major CLEC merger announcements, the rumor mill is rampant with XO being the center of some of the buzz. With its recent spinoff of NextLink, XO's CLEC asset is groomed for sale. The latest suitor is rumored to be Broadwing Communications LLC. Broadwing, which is nearly a billion-dollar company (2005 revenue was $879 million), is smaller than XO, which recorded $1.43 billion in 2005. Together, the companies would top the $2 billion mark, making them by far the largest of the Tier 2s. At risk of perpetuating the rumor mill, what do you think about the likelihood and the synergies of this matchup?" Broadwing had "nearly $1 billion in debt coming due in 2004." BW's debt is $370M, but total liabilities amount to $2.8B. Combine that with a rudderless ship like XO - and its $700M in debt - Hoo! Boy!