Covad: Why Investors Hung Up
Robert E. Knowling Jr., chief executive of telecom startup Covad Communications Group Inc., is nothing if not self-confident. When he announced on June 16 that Covad, which sells speedy digital subscriber line (DSL) service to Internet service providers, would spend about $200 million to acquire a small Southeastern DSL retailer called Bluestar Communications Inc., unhappy investors clobbered Covad's stock. Shares dropped 27% in one day, wiping out $1 billion of market value. Even if he had known what the reaction would be, Knowling says, he would do it again--but he wouldn't have slept for a month beforehand. "I'm going to prove them all wrong," he says. "I'll have the last laugh on this one."
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- A L'Oreal Heiress Is Now the World's Richest Woman
- Ivanka Trump Faces Courtroom Showdown Over $785 Sandals
- How Electric Cars Can Create the Biggest Disruption Since the iPhone
- Uber Losing Battle in London After Regulator Revokes License
- A Storm's Never Destroyed a Grid Like Maria Ruined Puerto Rico's