Why AT&T takeover of NCR hasn't been a real bell ringer; missteps with balky unit result in growing losses and plans for job cuts; will Allen pull the plug?

Article Abstract:

AT&T's unsolicited acquisition of NCR Corp in 1990 was intended to bring success for the communications giant in the computer manufacturing market, but mismanagement has resulted in huge losses for the unit, which may lead to its sale. AT&T's previous computer manufacturing efforts had all been failures, costing the company as much as $3 billion in losses over five years, but the company's top management was convinced that it belonged in the computer market. It decided to make an unsolicited offer to NCR Corp. By the end of the 1980s, NCR had transformed itself from an old cash register company into a successful computer manufacturer. AT&T's initially offered to pay $6.03 billion for NCR, but NCR was determined to remain independent. AT&T finally purchased the company for $7.48 billion in stock. NCR's rosy financial projections turned out to be extremely optimistic, and the company's fortunes began to decline as soon as AT&T took over. AT&T further stumbled by aggressively imposing its own corporate executives and culture onto NCR.

Electronic Computer Manufacturing, Computers & Auxiliary Equip, Management, AT&T Corp., T, NCR Corp., NCR, Company Business Management, Company Operations

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AT&T computer chief Stead resigns to head Legent, a software concern

Article Abstract:

Jerre L. Stead, former head of computer operations at AT&T Corp, will become CEO of software developer Legent Corp. AT&T made the announcement on Stead's resignation on Jan 3, 1995, and selected William T. O'Shea, senior VP of world-wide marketing, to run the unit on an interim basis while a permanent replacement for Stead is found. Insiders say AT&T is looking at several candidates from companies including HP, IBM and General Electric Co. The resignation comes as a surprise as the unit, renamed Global Information Solutions, is going through a transition, attempting to reach profitability and realign itself as a services company. Stead, who joined AT&T in Aug 1991 and lead its computer operations since early 1993, raised the unit's revenue 9% and its orders 21% during his reign.

Prepackaged software, Microcomputers, Packaged Software, Officials and employees, Human resource management, Appointments, resignations and dismissals, Microcomputer, New Appointment, Resignation, Stead, Jerre L., Legent Corp., Software Development

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