Sprint to acquire Centel in stock swap valued at $2.85 billion, or $33.57 a share: figure, a sharp discount to firm's market price, angers several holders
Article Abstract:
Sprint Corp and Centel Corp, two of the biggest communications carriers in the US, strike a $2.85-billion stock swap deal that would merge their companies to become the third-largest long-distance carrier in the country. The merger, which results in a stock value of $33.57 per share, is making Centel shareholders angry because they stand to lose about $9 a share. Centel chairman Jack Frazee, who will become Sprint's president and COO, says the deal was the best that could be had on a tax-free basis. William T. Esrey, who will remain chairman and CEO, says Sprint will try to internally place some 1,000 workers who may be laid off to cut expenses by $100 million yearly. Centel's 9,300 workers will bring Sprint's total to 52,300. The merger will also give Sprint local telephone operations in 19 states and cellular phone service in 14 states. Sprint will also own over 50 rural cellular properties. The merger ended a five-month long search by Frazee for a buyer or buyers for Centel, which was met with lukewarm interest from other bidders such as the regional Bell company Ameritech Corp and GTE Corp.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Time Warner sees synergy in partnership
Article Abstract:
Time Warner CEO Gerald Levin is optimistic about US West's $2.5-billion investment in his company, which places Time Warner among the innovators of the telecommunications/entertainment movement. Time Warner assets and cash flow will be redirected as part of the joint effort with US West. The companies intend to create a full-service multimedia network that will carry information, entertainment and communications to subscribers over Time Warner's cable network. Time Warner shares increased $1.50 to $35 after the announcement. Levin, who took over after the death of Steven J. Ross, is focused on future technologies and has been working for a year on a profitable partnership that would integrate the Time and Warner units.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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United Telecom to acquire GTE stake of 19.9% in US Sprint for $500 million
Article Abstract:
United Telecommunications Inc will purchase the remaining 19.9 percent stake of GTE Corp in US Sprint. The two firms were equal partners in US Sprint until 1988 when United Telecom purchased 30.1 percent of GTE's stake. The purchase of GTE's remaining interest for $500 million was expected by most analysts. US Sprint is the third largest long-distance telephone service, with 1st qtr 1990 revenue of $1.2 billion, up 24 percent from the previous year. Analysts feel United Telecom made an astute deal because Sprint is a very strong company at the moment. As part of the deal, United Telecom will change its name to Sprint Corp.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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