A.T.&T. and NCR hit snag; new round of talks seen

Article Abstract:

AT&T and NCR Corp encounter difficulties in their ongoing negotiations about a takeover. The companies are deadlocked over the issue of protection for NCR shareholders against the possibility of a drop in the price per share of AT&T's stock. NCR proposes a guarantee of $110 per share even if AT&T stock drops to $32.50, while AT&T has offered an 'all-stock' deal, which means that if AT&T's stock falls after an agreement is reached, NCR shareholders might not get so much. In the latest negotiations, AT&T offers to raise its bid above $110, but without protection against a drop in its stock price. AT&T rejects NCR's suggestion of insurance of a $110 stock price against a floor price of $32.50, offering instead to guarantee $110 per share down to $35.50 per share. Many analysts believe that some agreement will be reached, but at least one observer cautions that the deal is not done.

Computer peripheral equipment, not elsewhere classified, Telecommunications services industry, Telecommunications industry, Telephone companies, Computer Industry, Telephone Company, Acquisition, Merger

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Harmony in AT&T-NCR tune

Article Abstract:

AT&T and NCR reportedly are carefully considering a negotiated settlement of the telecommunication company's four-month-old takeover attempt of the computer manufacturer. The news followed the NCR special shareholder's meeting in which insiders say AT&T failed to produce the 80 percent vote required to oust the current NCR board of directors. AT&T should gain four seats on the board once all the votes have been counted in ten days. AT&T's current offer of $90 was to have been raised to $100 if the required vote had been received. Just prior to the meeting NCR lowered the price it was demanding to $110, putting a friendly merger within reach.

Telephone communications, exc. radio, Planning, Acquisitions and mergers, Negotiations, Stockholder, Strategic Planning, Stock, Negotiation, Board of Directors

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Similar abstracts:

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