NCR asks AT&T to alter bid, ensuring $110 a share even if AT&T stock drops

Article Abstract:

NCR Corp asks AT and T to modify its $110 a share acquisition offer to ensure that NCR shareholders will be protected against a drop in the price of AT and T stock during the three months it will take to finalize the merger. The $7.48 billion AT and T offer involves trading AT and T stock for NCR stock. NCR shareholders would receive $110 a share if AT and T's stock remained between $35.50 and $39.25 a share under the current AT and T offer; the stock holders would receive more if it went above $39.25 a share and less if it went below $35.50 a share. The NCR board of directors' new proposal waives the right to receive more money if AT and T stock rises above $39.25 but calls for AT and T to ensure $110 a share even if AT and T stock falls to $32.50 a share. AT and T stock fell 12.5 cents and closed at $36 a share on Apr 23, 1991.

Computer peripheral equipment, not elsewhere classified, Computer Industry, Stock, Acquisition

---

AT&T gets lower-than-expected vote in proxy fight over hostile bid for NCR

Article Abstract:

AT&T receives less support than expected from NCR shareholders at the special meeting called for a vote on AT&T's takeover offer. Only 60 percent of stockholders support the bid, which stands at $90 per share. The price would have become $100 per share if AT&T had received 80 percent support, which was the figure required to oust the entire NCR board of directors. AT&T can still replace four directors, including NCR chairman Charles E. Exley Jr. NCR reduced their $125 price demand to $110 just prior to the meeting, but executives at AT&T maintain that is still too high. Indications are that both companies are now more willing to negotiate a friendly merger rather than a hostile takeover, as this would benefit AT&T greatly in terms of year-end accounting options and allow the company to increase its offer to NCR.

Telephone communications, exc. radio, Stockholder, Strategic Planning, Board of Directors, Takeovers

---

Similar abstracts:

• Abstracts: Wang Labs to emerge from Chapter 11 with strong balance sheet, chief says. Wang Labs electronic-image aide quits in blow to fast-growing sector of firm
• Abstracts: FCC proposes to award HDTV channels to existing outlets, spurning start-ups. Backers of HDTV counterattack to overcome Bush's opposition
• Abstracts: 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
• Abstracts: AT&T readies hostile NCR bid; a proxy challenge to unseat directors also is considered. NCR may seek Goldman's help against AT&T
• Abstracts: Smart sets: age of interactive TV may be nearing as IBM and Warner talk deal; viewers could dial a show, then shift pieces about or create own replays; a commercial just for you

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