A.T.&T. deal may hinge on S.E.C. ruling; 'pool' treatment asked; NCR reappoints Exley and president to board

Article Abstract:

AT&T and NCR Corp seek a decision from the Securities and Exchange Commission (SEC) that would allow AT&T to treat its acquisition of NCR as a 'pooling of interests,' for accounting purposes. An alternative method, called the purchase method, would require AT&T to add in billions of dollars of 'good will,' thereby reducing the company's earnings. The resolution of AT&T's five-month takeover attempt could depend on the SEC's ruling. The accounting problem arises out of NCR's takeover defense, which included the issue of a special dividend in Feb 1991. Accounting rules disallow pooling in situations in which equity structure has recently been changed. Meanwhile, Charles E. Exley has been reappointed as chairman of NCR's board while Gilbert P. Williamson is selected president.

Regulation misc. commercial sectors, Laws, regulations and rules, Accounting, Appointments, resignations and dismissals, United States. Securities and Exchange Commission, Exley, Charles E., Jr., Williamson, Gilbert P.

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A.T.&T. buying computer maker in stock deal worth $7.4 billion

Article Abstract:

NCR Corp agrees to be acquired by AT&T in a deal that involves $7.4 billion worth of AT&T stock. The agreement comes after more than five months of resistance from NCR. AT&T wants this merger because it wants to expand beyond telecommunications and into the computer business, responding to markets that are increasingly characterized by links between computers and communications. AT&T's own computer business has not done well, losing $2 billion in six years. Robert Allen, the chairman of AT&T, says that AT&T and NCR, together, will endeavor to make 'global computer networks as easy to use and accessible as the telephone network is today.'

Technological forecasting, Beliefs, opinions and attitudes, Strategic Planning, Future of Computing, Allen, Robert E.

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