Takeover bid for NCR gets boost in court; judge rejects ESOP plan, giving AT&T a chance to replace firm's board
Article Abstract:
AT&T is strengthened in its attempt to acquire NCR Corp by a court's decision to reject an NCR plan to issue 8 percent of the company's stock to employees. The decision means that AT&T has a better chance to replace NCR's board in a proxy fight at an annual meeting to be held on Mar 28, 1991. AT&T needs an 80 percent vote, which probably would not have been possible if employees held 8 percent of NCR's stock. AT&T will increase its $90-a-share offer ($6.12 billion) to $100 a share ($6.8 billion). In related news, IBM has reported that 1st qtr earnings will be lower than expected. This is bad news for NCR's defense because NCR has been arguing that its stock price could outrun AT&T's offer. It now appears that NCR's new generation of computers will be marketed in an environment that will be more difficult than had been foreseen.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Was NCR holdout against AT&T bid worthwhile tactic? Offer was lifted at least 22% (29% by one accounting), yet experts are divided
Article Abstract:
Industry observers question the wisdom of NCR Corp's five-month holdout battle against American Telephone & Telegraph's takeover bid. Some say NCR Chmn Charles E. Exley Jr did the best possible, pushing AT&T's original bid up 22 percent, from $90 a share, or $6.12 billion, to $110 a share, or $7.48 billion. According to analyst Felix Rohatyn of Lazard Freres & Co, when a well-financed company makes a sensible and logical bid at a fair price, 'ultimately the bidder will win.' If 'the end is clear,' asks Rohatyn, why is it necessary to take such a long time; spend so much money; and damage company morale, efficiency and productivity?
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
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