A computer deal that worked

Article Abstract:

Success of the two-year-old hostile takeover of NCR Corp by AT and T appears to belie the common wisdom that mergers between computer firms are doomed to fail. Unlike industry stalwarts IBM, DEC and Unisys, NCR is successfully navigating the industry shift to smaller, inexpensive computers linked by networks. NCR's new System 3000 computers posted $1 billion in sales in 1992, and a 35 percent increase is forecast for 1993. Skeptics say that NCR has lost ground to Microsoft and Novell and such networking vendors as Cisco Systems and Synoptics Communications. Indeed, NCR's 1st qtr revenue fell from $1.53 billion in 1992 to $1.48 billion in 1993; a profit in the 1992 quarter became a $20 million loss in 1993. Still, NCR's long-range strategy nicely complements AT and T's.

Telephone communications, exc. radio, Analysis

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The NCR deal and the empty S.E.C. chair

Article Abstract:

The Securities and Exchange Commission (SEC) is usually consulted on transactions that deviate from ordinary procedures, and observers believe that the SEC probably will have to clear any agreement on a takeover of NCR Corp by AT&T. The reason involves an accounting issue that arose when NCR decided to issue a special dividend, thereby jeopardizing AT&T's 'pooling of interest' method of accounting. If the SEC does not approve AT&T's choice of accounting methods, the deal might be restructured, and the cost to shareholders might be as much as $200 million. The SEC is currently without a chief accountant. Edmund Coulson resigned in Jan 1991, and the SEC's chairman, Richard C. Breeden, has not yet selected Coulson's replacement.

Management, Laws, regulations and rules, Telecommunications services industry, Telecommunications industry, Telephone companies, United States. Securities and Exchange Commission, Telephone Company, Breeden, Richard C.

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NCR sees violations in bid by A.T.&T

Article Abstract:

NCR Corp claims, in papers filed in US District Court on Jan 17, 1991, that AT and T's hostile takeover bid is a violation of federal laws. NCR says that by issuing the Universal card, which is a combination credit card and calling card, AT and T is acting as a bank holding company, and under federal law bank holding companies are prohibited from owning non-bank businesses. NCR also says that AT and T would finance the $6.1 billion acquisition of NCR with money from its long-distance telecommunications business, a breach of federal regulations. AT and T rejects NCR's arguments as 'diversionary' and 'grasping after straws.'

Legal Issues, Lawsuits

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