AT&T, NCR may combine computer lines; firms are said to be in talks that may end in spinoff or an acquisition offer

Article Abstract:

AT and T considers the acquisition of NCR Corp in an effort to boost its computer manufacturing operations. Analysts say that the long-distance carrier would need to pay around $6 million for NCR, which is NCR's revenue for 1989. NCR's book value, which is based on 67 million shares outstanding at $48 a share, is around $3.22 billion. NCR revenue for the first nine months of 1990 is up 5 percent at $4.39 billion but net income has fallen 3 percent to $258 million, as compared with the first nine months of 1989. Some observers familiar with the talks say that two possible scenarios exist: one in which AT and T acquires NCR, and another in which AT and T sells its computer business to NCR, with the telephone company taking an equity stake in the resulting operation. Neither NCR nor AT and T officials would comment on the possible merger.

Planning, Acquisitions and mergers, Negotiations, Strategic Planning, Acquisition, Negotiation

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NCR's earnings exceed expectations, shoring up its position against AT&T

Article Abstract:

NCR Corp's earnings and revenue for the 1st qtr of 1991 exceeded expectations causing industry observers to believe that the computer company will have a stronger position in holding off AT and T's hostile takeover attempt. NCR reported a net income of $46 million, or 70 cents a share, for the period, which includes a $7 million charge associated with defending against AT and T's takeover bid. NCR had net income of $52 million, or 73 cents a share, for the same period in 1990. Revenue for the period rose by eight percent to $1.37 billion. NCR's financial report lends credibility to its contention that its stock is worth more than the $100 a share AT and T is offering. NCR stock closed at $96.625 a share on Apr 15, 1991.

Mergers, acquisitions and divestments, Finance, Telecommunications industry, Profits, Revenue, Profit, Takeovers, First Quarter

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