Merger shares show a strong recovery

The shares of the internet company Lycos showed a strong recovery on the New York stock exchange yesterday, while the Terra shares continued to fluctuate. By 12.45 local time, Lycos shares had gained nearly ten per cent, rising to $63, while Terra had climbed by 0.13 per cent to $47.063, in what was described as a much more favourable atmosphere than the previous day. The fluctuations reflected investors' dooubts about the future of the merger between the two companies. The merger gives Terra, an affiliate of Telefónica, which dominted Latin America's telecomes industry, a portal into North America and Europe. Analysts said that the recovery was logical after the heavy losses of the previous day (ten per cent for Terra and 5.75 per cent for Telefónica). The merger has created the third largest internet portal in the world and analysts said yesterday “nobody doubts that this sector will be the future of the economy.”