Bermuda-based Global Crossing is forecasting that by buying US-based Frontier Corp. for $11.2 billion in stock that growth will be boosted about 30 percent annually before interest, taxes, depreciation and amortisation.

In a telephone conference call with analysts Global Crossing chief executive officer Robert Annunziata also said he had no plans to spin off Frontier's local operations.

Those operations include local and wireless phone businesses, new data operations, and sales, customer service and billing operations. The announced share purchase will allow Global Crossing to link its undersea and international land-based fibre optic networks with Frontier's fibre optic network in the US.

Frontier hosts the Internet sites of Yahoo!, ZDNet, Playboy and others.

Mr. Annunziata did not rule out further acquisitions in the future.

During the call Global Crossing chief financial officer Dan Cohrs forecast earnings growth of 30 percent before interest, taxes, depreciation and amortisation.

He said the merged company would report a net loss, but he declined to give a specific forecast. Mr. Cohrs said the company was aiming at getting an investment grade credit rating on its bonds, which are in the junk category.

"We think we're looking at a very strong credit story and we would be targeting an investment grade credit rating,'' he said. "I would think in a very short period of time, we would be into the `A' rating category.'' Donaldson Lufkin & Jenrette Securities analyst Robert Schiffman called the purchase a bold move in an interview with Reuters news agency.

"Global Crossing is one of these high-flying new telco start-ups that's only been around for a couple years, buying an entity that's been in the local exchange business for the last hundred years,'' fixed income analyst Robert Schiffman said.