AT&T, NCR cite 'progress' in merger talks
Article Abstract:
NCR Corp and AT and T indicate that they are making progress on defining the terms of AT and T's $7.48 billion merger offer. AT and T's $110-a-share offer, made in Apr 1991, is the latest offer since AT and T began its takeover battle five months ago with a $90-a-share offer. Industry observers note that the current negotiations have all but ensured that NCR will merge with AT and T. AT and T's $110-a-share offer involves a stock trade instead of cash. NCR wants to ensure that its shareholders will receive $110-a-share if AT and T's stock drops in value during the course of negotiations. Analysts note that, depending on an SEC ruling, the agreement might shift to a deal involving 40 percent cash and 60 percent stock.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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NCR weighs using untested rights plan as defense against AT&T takeover bid
Article Abstract:
NCR Corp considers the contingent value rights tactic as a possible defense against AT and T's $6.12 billion hostile takeover bid. The contingent value rights defense involves setting a one-time common stock price that the company expects to reach within a defined time period, and then paying stockholders all or part of the difference in a dividend if it fails to reach the predetermined stock price. NCR has not announced the defense and insiders familiar with the computer maker's defense strategies say that the plan is highly preliminary. Industry observers believe the strategy is designed to let NCR remain independent long enough to reap the revenue benefits of a new line of computers expected to be released soon.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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