EXHIBIT 99
FRONTIER CONSENTS TO GLOBAL CROSSING-US WEST
MERGER AGREEMENT AND US WEST TENDER OFFER
New Amendment Strengthens Shareholders' Position
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ROCHESTER, NY, May 17, 1999 -- Frontier Corporation (NYSE:FRO), one of the
country's leading providers of facilities-based integrated communications and
Internet services, today announced that it has consented to Global Crossing's
entry into a merger agreement with US West, and an agreement by which US West
will initiate a tender for 9.5% of Global Crossing shares.
"We are pleased that Frontier's Board of Directors has given its unanimous
consent for this initiative to proceed," said Xxxxxx X. Xxxxxxx, Chief Executive
Officer of Frontier. "We look forward to closing our agreement with Global
Crossing as planned, in the third quarter of this year, and to our future role
in providing unsurpassed data/Internet, local and global integrated
communications worldwide."
In consenting to this Global Crossing-US West agreement, Frontier and Global
Crossing approved certain changes to their own merger agreement that strengthens
the Frontier shareholders' position, including the following:
- An increase of $1.00, from $62 to $63, in the per share value for
Frontier shareholders, if the average value of Global Crossing's
shares during a pricing period prior to the closing is between $34.56
and $56.78 per share, an increase in the minimum exchange ratio from
1.0919 shares to 1.1095 shares and an increase in the maximum exchange
ratio from 1.7939 shares to 1.8229 shares, so long as the US West
tender for Global Crossing shares is consummated.
- A seven percent increase per year, compounded daily, in the new $63
share value and the maximum exchange ratio if the Global Crossing -
Frontier merger does not close by December 31, 1999.
"When the original Frontier-Global Crossing transaction was negotiated, our
overriding concern was to provide certainty of value to our shareholders. We
are very pleased that we have not only retained our favorable collar mechanism
at an increased price, but have further increased the certainty of this
transaction and also obtained a seven percent per year increase in the merger
consideration if the merger does not close by December 31, 1999," said Xxxxx X.
Xxxx, President and Chief Operating Officer of Frontier. "With Global Crossing,
we hope to contribute our highly pro-competitive culture to the benefit of the
broader organization."
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About Frontier
Frontier Corporation is one of the leading providers of integrated
communications solutions - including Internet, IP and data applications, long
distance, local telephone and conferencing - to business customers nationwide.
The self-healing Frontier Optronics Network (SM) provides customers with faster
transmission speeds, greater bandwidth capacity and unrivaled reliability. For
more information, visit the Frontier website at xxx.xxxxxxxxxxxx.xxx.
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You can receive a faxed copy of any Frontier Corporation press release dating
back to May 1998, free of charge, 24 hours a day by calling 0-000-000-0000. An
automated system will provide you with instructions.
