AT&T's soaring stock is doing the talking for the company

Article Abstract:

AT&T's market value has surged by $40 billion, or 72%, since mid-July 1997 despite no announced plans from new Chmn C. Michael Armstrong. The company's stocks have performed the best in the 30-stock Dow Jones industrial average since Jun 1997, and share values have risen from $34.375 in mid-Jul 1997 to $59.125 in mid-Dec 1997. By comparison, AT&T's stock value declined by about 25% by between the start of 1996 and May 1997. AT&T heightened its turnaround by selling its Universal Card credit card business to Citicorp for $3.5 billion in cash, plus about $700 million worth of long-distance time, according to insiders. The Citicorp deal could boost AT&T's annual revenue by $100 million to $150 million, according to CFO Dan Somers. Armstrong aims to shift the company from a quasi-conglomerate into a company that provides almost exclusively telecommunications services. The streamlining plan will include management layoffs and management compensation corresponding to the company's overall financial results.

Economic policy, Securities, Company securities, Armstrong, C. Michael

---

Two phone giants reported merging in $52 billion deal; Bell Atlantic to add GTE; the latest in a wave of large consolidations as players scramble to gain size

Article Abstract:

Bell Atlantic has continued the recent telecommunications industry consolidation trend by agreeing to purchase GTE for $52.8 billion in stock, according to executive insiders. The acquisition of GTE, the largest independent US local and long-distance company, would place Bell Atlantic atop the domestic local phone company market with more than 62 million customers. Both companies probably will pool their resources to deploy high-speed Internet services and challenge other Bells's local phone markets. Financial terms call for GTE shareholders to receive 1.22 Bell Atlantic shares, which closed at $45 on Jul 27, 1998, for each GTE share, which amounted to $54.90. Bell Atlantic shareholders are likely to control 57% of the new company, according to an insider. The new company will be based in New York and employ around 255,000, people familiar with the transaction said.

Company acquisition/merger, Bell Atlantic Corp., BEL

---

AT&T talking to GTE about teaming up, executives say

Article Abstract:

AT&T and GTE are engaging in preliminary merger discussions. The companies have been discussing this possibility for more than a year, but Worldcom's $30 billion takeover bid for MCI, announced in the week of Oct 3, 1997, has heightened the pressure on AT&T, which needs to find a partner with a presence in local telecommunications. A deal between AT&T and GTE would be worth an estimated $48 billion and would be the largest takeover in American history. Besides looking for a partner, AT&T needs to find an executive to replace Chmn and CEO Robert Allen, who plans to leave soon, and this complicates the companies' merger talks because GTE Chmn and CEO Charles R. Lee probably would expect to assume Allen's posts.

Company Acquisition/Merger

Similar abstracts:

• Abstracts: British phone concerns end merger talks; attempts to create a global telecommunications giant collapses. British deal to buy MCI is in disarray
• Abstracts: U.S.-Europe deal over technology is reported near; but trade snags remain; Asians, French and the British retain objections, risking delay to global accord
• Abstracts: High-tech companies battle over the value of donated software; Microsoft gives 'millions' to charity, but critics question the true cost; 'junk bonds of philanthropy.' (IBM challenges Microsoft) (Company Business and Marketing)
• Abstracts: Changing picture: the advent of digital broadcasting makes the convergence of television and PCs a real possibility
• Abstracts: SBC to acquire SNET for $4.26 billion: Baby Bell is first to join long-distance market with New England deal. LCI to acquire USLD Communications in stock deal valued at $331.8 million

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.