US West's Continental ambitions; thanks to communications law, a Baby Bell presses to be a cable power

Article Abstract:

US West plans to acquire Continental Cablevision for $5.3 billion in cash and stock and the assumption of a $5.6-billion debt, as US West tries to expand into a national telephone and cable presence. Continental is the third-biggest cable carrier in the US, with access to a total of 16.3 million homes across the country. US West has 25 million customers in the Western states. The deal calls for Continental shareholders to receive $1 billion in preferred equity, $2.8 billion to $3.3 billion in common shares in US West Media Group and $1 billion to $1.5 billion in cash, guaranteeing the shareholders $30 a share. If the deal fails, US West will take a $282.5 million stake in Continental. If it succeeds, the merged company could offer services in 66 of the top 100 cable areas. Some observers believe that US West's investment in Continental's cable network is unwise, since new communications laws allow companies to lease lines from other carriers.

Cable Television Systems, Cable Networks, Cable and other pay TV services, Mergers, acquisitions and divestments, Cable television broadcasting industry, Cable television, U S WEST Inc., USW, Continental Cablevision Inc., Company Acquisition Merger

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Have's and have-not's revisited: rich nations talk high-tech, but the poor live no-tech

Article Abstract:

The Telecom 95 conference highlights the gap in technology available to the poorest and richest nations. Over 50 countries are participating in Telecom 95, touting a telecommunications revolution that causes positive political change worldwide. Despite those claims, the 48 least-wealthy countries are dropping farther behind than ever in the effort to create a telecommunications infrastructure. The hardest hit country is Africa, where political instability and a lack of investors hobble communications growth. Africa's growth is significantly less than that of other developing nations such as Egypt, China and India. The United Nations' International Telecommunication Union agency plans a new fund to raise $500 million for telephone networks in poor countries. The proposed multinational alliances between US and European countries do not begin to address the issue of enabling telecommunications in remote areas.

Forecasts and trends, Industry trend, International aspects, Information services, Africa, Industry Trend Or Event

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AT & T's board likely to act soon on choice of a successor

Article Abstract:

AT&T will announce a candidate to replace outgoing chmn Robert E. Allen at a board meeting on Oct 16, 1996. Allen is spearheading the search for a new president and has reduced the list to a few potential choices. AT&T began searching for a new president in Aug, 1996, when Alex Mandl resigned to take over the Associated Communications Group. The rumored choices for the new position include Hughes Electronics Chmn C. Michael Armstrong and Sprint Chmn William T. Esry. Armstrong is credited with transforming Hughes into a powerful force in telecommunications and satellite broadcasting. Esry increased Sprint's presence in wireless telephone services and overseas via a series of partnerships with cable firms and European phone companies. Both Esry and Armstrong possess the qualities AT&T is looking for in a candidate.

Management, Officials and employees, AT&T Corp., T, Employee selection, Hiring, Allen, Robert E., Company Employee

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