McCaw to buy into franchise in New York; Metromedia stake will cost $1.9 billion; sale is set on Southeast franchises

Article Abstract:

McCaw Cellular Communications Inc is planning to acquire Metromedia Co's New York cellular telephone franchise and will sell its Southeastern US franchises to Contel Corp. McCaw could be frustrated in its acquisition plans by LIN Broadcasting. LIN has right of first refusal to buy Metromedia's franchises because it currently owns a 50 percent voting interest and a 45 percent equity interest in the New York cellular services. Some analysts believe LIN will exercise its option, but others feel LIN's planned merger with BellSouth Co will make LIN more conservative about adding on debt. McCaw will sell its Southeastern franchises to Contel for $1.3 billion and is in effect hoping to swap franchises in less populated portion of the US for a piece of the New York market.

Management, Telecommunications services industry, Telecommunications industry, Divestiture, Divestment, Franchise, Competitive Bidding, Metromedia Co., Contel Corp., CTC

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McCaw boosts offer for LIN to $150 a share; suitor may try proxy fight to oust target's board; BellSouth studies bid

Article Abstract:

McCaw Cellular Communications Inc increases its tender offer for LIN Broadcasting Corp to $150 a share for 22.5 million of LIN's 54 million shares. McCaw's previous offer was $125 a share for 22 million shares. McCaw will also pay a dividend of $16.17 of McCaw common stock to non-McCaw holders for each LIN share retained after completion of the cash portion of the offer. McCaw now owns 9.4 percent of LIN. The revised tender offer, were it successful, would increase McCaw's stake in LIN to 51.2 percent, giving McCaw control of LIN. Until directors look at the new offer, LIN asks shareholders not to tender their shares. McCaw has been fighting to prevent a defensive agreement between LIN and BellSouth Corp, which would merge their cellular-phone operations.

Merger

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McCaw agrees to acquire LIN for $3.4 billion

Article Abstract:

McCaw Cellular Communications Inc will acquire LIN Broadcasting Corp, since BellSouth has withdrawn its offer for LIN, as both LIN and McCaw had hoped it would. McCaw will purchase 21.9 million LIN shares for $154.11 each, or $3.4 billion. The offer will give McCaw a little more than 50 percent of LIN. LIN will also buy $25 million of McCaw Class A common stock, distributed to LIN stockholders, excluding McCaw, as a dividend. The acquisition will make McCaw the largest cellular company in the US, giving the company 70 million potential customers. BellSouth will receive $66.5 million in merger 'termination' fees and expenses from LIN.

Cellular telephone equipment industry, Market share, Mobile Phones, Bell Regional Holding Companies

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