John Stanton

"The McCaw strategy involved sending several different messages: to convince LIN shareholders that the better deal was with McCaw; to persuade others in the cellular industry that McCaw was the better steward of LIN's critical licenses; and to build pressure on BellSouth through political means and by convincing them they were in a fight with a ruthless opponent. Normally eager to avoid reporters, McCaw started sending signals through the news media that he wanted LIN at practically any price. McCaw compared his company to anti-imperial Scottish warriors, the Islamic Jihad, and the anti-Soviet Afghan rebels. "We want them to think we're maniacs," he told Forbes magazine. He sent John Stanton, Rufus Lumry, and other McCaw executives on a worldwide trip to raise money from bankers who were privately assured that McCaw would make no crazy offers. The group raised $5.5 billion—proof that Craig McCaw was not dependent on Michael Milken, who was about to have serious trouble with the law. Meanwhile, on Wall Street, the McCaw team tried to raise doubts about BellSouth's offer by pointing out the Material Adverse Change (MAC) clause in the Baby Bell's offer. Routinely used by many compa- nies in buyout offers, the MAC clause allowed the cautious BellSouth an out if problems erupted. The McCaw company had similar outs in its offer, but the team stressed how long Bells usually took to close deals compared to McCaw's history of rapid closures. A slow-as-molasses Baby Bell deal, they implied, stood a good chance of triggering the MAC clause and killing the whole arrangement. Other McCaw aides tried to make political trouble for BellSouth, telling state regulators that the LIN deal would drive up local charges or violate agreements. Two U.S. senators from Washington State agreed to introduce a bill to block BellSouth. Then came McCaw's flanking maneuver, what Perry calls "the beginning of the end" for BellSouth."

"When John Stanton walked into McCaw Communications, he was a young associate determined to make partner at his accounting firm by finding and seizing an area of expertise. Almost as soon as he heard about cellular, Stanton realized he had found his niche. (He later founded his own national cellular company, Western Wireless.) Stanton now came to McCaw with an idea for funding cellular by adapting a form of lending analysis used in the cable industry. This was key because potential investors or lenders needed a reference point to understand a new business where profits were distant. As Stanton later recalled, he met first with Keith McCaw, who didn't say much in response. "Wait a minute," Keith finally said, leaving the room. Keith came back escorting Ed Hopper, who looked at Stanton's papers, listened to his pitch, and instantly liked the idea. "You're hired," said Hopper. "Can you have a team here tomorrow?""