IBM

Description

Big Blue? Try Huge Blue. International Business Machines (IBM) is the world's top provider of computer products and services. Among the leaders in almost every market in which it competes, the company makes mainframes and servers, storage systems, and peripherals. Its service arm is the largest in the world and accounts for more than half of its revenue. IBM is also one of the largest providers of both software (ranking #2, behind Microsoft) and semiconductors. The company continues to use acquisitions to augment its software and service businesses, while streamlining its hardware operations with divestitures and organizational reengineering.

McLeod USA

Description

McLeodUSA hopes to find its silver lining in the deregulating US telecom industry. A facilities-based competitive local-exchange carrier, McLeodUSA offers local and long-distance service, Internet access, and other data services, primarily to small and midsized businesses and residential customers. It operates local access lines in 25 states in the western and midwestern US and offers wireless voice through AT&T Mobility (formerly Cingular Wireless). Stormy skies had threatened the company as losses and increasing competition led it to file for Chapter 11 bankruptcy protection, from which it emerged in early 2006. Fidelity Investments and Wayzata Investment Partners own 31% and 29% of the firm, respectively.