AT and T's bid to take control of McCaw Cellular may not provide a windfall for all shareholders

Article Abstract:

Public holders of McCaw Cellular Communications Inc stock will not benefit directly from AT and T's plans to buy a 33 percent stake in the provider of cellular phone services. AT and T plans to pay McCaw itself, British Telecommunications PLC and McCaw family members an average of $53 per share for their stock. Meanwhile, McCaw stock is publicly trading at $32 per share, up from $24.625 when the investment deal was announced Nov 4, 1992. AT and T decided to buy the 33 percent McCaw stake at a premium rather than take over the entire firm because it did not want to spend the billions more a takeover would require and because it did not want to assume McCaw's huge debts. The differential treatment of different shareholder groups is a controversial issue. McCaw and AT and T say all McCaw shareholders will benefit from AT and T's marketing and technological power.

Radiotelephone communications, Television broadcasting stations, Telephone communications, exc. radio, Telecommunications services industry, Telecommunications industry, Cellular telephone services industry, Cellular telephone services, Investments, Securities, AT&T Wireless Services Inc., Cellular Radio, Market Value, Stockholder Accounting

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NCR chairman, at talk with analysts, appears to soften stance on AT&T bid

Article Abstract:

NCR Corp Chmn Charles E. Exley says, in a meeting with securities analysts, that NCR might consider a lower takeover offer than $125 per share. AT&T has offered $90 per share. Situations that could change NCR's position include: further deterioration of the economy in the economy, business problems for NCR itself, harm caused to NCR by the AT&T takeover attempt, or a decision by NCR board members or by investment bankers that an offer is fair. According to AT&T, 70 per cent of NCR's shareholders want a merger between the companies and more than 50 percent have voted for a special shareholder's meeting to try to oust the board. Exley believes that NCR can 'outrun' AT&T by boosting the NCR's earnings and stock price before the 1992 annual meeting.

Conferences, meetings and seminars, Computer industry, Acquisitions and mergers, Beliefs, opinions and attitudes, NCR Corp., NCR, Merger, Exley, Charles E., Jr.

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