Abstracts » Business, general

AT&T, LIN Broadcasting differ widely on valuation for cellular company

Article Abstract:

AT and T will have to decide whether to purchase the remaining 48% of LIN Broadcasting Corp or sell its stake in the cellular telephone provider. AT and T is following a 1989 agreement made between McCaw Cellular Communications Inc, which was purchased by AT and T in 1994, and LIN. Under the agreement, McCaw agreed to purchase the remaining 48% of LIN by the beginning of 1995, or it would sell its stake. AT and T is not legally obligated to follow this agreement, but has used it as a guide. Controversy has been centered over the valuation of LIN. AT and T's evaluators value LIN at $105 per share, while LIN's evaluators value it at $155 per share. This 49% difference will force the company's to use a third valuation to break the deadlock. After the three valuations are averaged, AT and T will have 45 days to decide whether to purchase the remainder of the company. Most observers believe that AT and T will purchase the rest of LIN because the company serves core markets in New York, Dallas, Los Angeles and Houston.

Radiotelephone communications, Cellular Mobile Radio Services, Cellular and Other Wireless Telecommunications, Mergers, acquisitions and divestments, Cellular telephone services industry, Cellular telephone services, T, American Telephone and Telegraph Co., Company Acquisition Merger

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McCaw order signals cellular market shift

Article Abstract:

McCaw Cellular Communications Inc, together with its affiliate, LIN Broadcasting Corp, choose Ericsson GE Mobile Communications, which is a joint venture of Sweden's LM Ericsson and General Electric Co, to supply equipment for a $250 million contract. McCaw and LIN plan to rebuild the cellular telephone system in New York and New Jersey, replacing existing equipment, which was supplied by Motorola, with equipment supplied by Ericsson. McCaw will also install Ericsson equipment in Seattle, WA, and Portland, OR, replacing equipment supplied by AT&T. Motorola and AT&T had been dominant forces in the US cellular telephone equipment market, but McCaw's choice of Ericsson signifies a changing situation.

Telephone Communication, Communications Equipment, Telecommunications equipment industry, Telecommunications equipment, Contracts, Cellular telephone equipment industry, AT&T Wireless Services Inc., Market Analysis, Cellular Radio, Ericsson GE Mobile Communications Inc., MCWA

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