AT&T lifts bid for NCR to $110 a share but in stock; telecommunications giant's offer is for $7.48 billion; computer maker balks

Article Abstract:

AT and T renews its bid for NCR Corp by offering $110 a share, or $7.48 million, for the computer manufacturer. The offer involves AT and T stock rather than cash, which causes NCR to reject the offer in consideration of stock price volatility. AT and T's stock closed at $37.375 a share on Apr 19, 1991; the telecommunication company's stock has been rising since Jan 1991 when it was worth $29.25 a share. NCR stock holders would get a maximum of 3,099 AT and T shares and a minimum of 2,803 shares under the AT and T proposal. The final price per share for NCR stockholders will vary between $108.465 a share and $112.12 a share, depending on the price of AT and T stock. AT and T has given NCR a 24-hour period to accept the new proposal. The offer expires on Apr 22, 1991 at 5 p.m.

Computer peripheral equipment, not elsewhere classified, Telecommunications industry, Negotiations, Stock, Negotiation, Takeovers

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Calculated offer: why AT&T wants to fight for NCR despite rejected bid; target is big enough to bring critical mass in computers and shares strategic goals; other ventures have failed

Article Abstract:

AT and T's hostile $6.03 billion bid for computer maker NCR Corp is an effort to revitalize its failed computer business, which the company sees as a strategic and necessary business in the future. The number one telephone company believes that it will have to stay in the computer business because customers in the 1990 will demand a seamless global link between people, organizations and information. Mergers in the computer industry have historically been unsuccessful but AT and T fears that its domination in telecommunications would be threatened if a competitor could beat it to computerized voice data and video networking. NCR Corp stock soars $24.75 a share and closes at $81.50 on Dec 3, 1990.

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AT&T makes unsolicited $6.03 billion bid for NCR after merger discussions stall; offer equals $90 a share; move aims to advance business in computers

Article Abstract:

AT and T makes an unsolicited $90 a share offer for NCR Corp. The $6.03 billion bid is made after two weeks of merger talks stall. Analysts see the move as an attempt by AT and T to advance its business in the computer industry. The number one telephone company has failed to revive its computer business internally and is taking $2 billion in losses. NCR did not react to the proposed bid favorably and indicates that it will not allow its board to be intimidated by an ultimatum or demand. NCR had previously rejected an $85 a share offer as 'grossly inadequate'; AT and T's current bid expires on Dec 5, 1990, and is not a tender offer.

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