Bell Atlantic, NYNEX reach accord for $23 billion 'merger of equals;' big hurdles remain on road to creating No.2 phone company
Article Abstract:
Bell Atlantic and NYNEX agree to the terms of a merger, making the combined telecommunications company the second largest phone company in the US with a market valuation of approximately $50 billion. The new company will further accrue an estimated $27 billion in annual revenue, employ nearly 134,000 workers across the globe and earn $3 billion in profits each year. The new Bell Atlantic will provide service to approximately 36 million customers along the Atlantic seaboard, and the company will certainly possess the leverage to enter new markets opened by passage of the Telecommunications Act of 1996. The financial terms of the agreement call for the new company to issue replacement shares to Bell Atlantic and NYNEX stockholders, with the NYNEX shares being slightly devalued to compensate for recent fluctuations surrounding the merger's speculation.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Pacific Telesis, SBC are holding talks for what would be first merger of Bells; local telephone operations to include California, Texas, 5 other states
Article Abstract:
SBC Communications is in acquisition talks with Pacific Telesis Group, examining the possibility of purchasing the California-based phone company in the first merger of the RBOCs. A united PacTel/SBC company would control local phone service to 25 million people throughout seven Western states and generate approximately $25 billion in annual revenue. Should the talks lead to a stock-swap agreement, SBC would assume control of the joint enterprise, worth an estimated $32 billion compared to PacTel's $12 billion market value. PacTel has encountered financial difficulties and strategic mistakes during the last several years, and its stock price on Mar 29 1996 was approaching a 52-week low.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Rivals assail GTE on impact of bid for MCI. AT&T, 2 Baby Bells trade accusations as Senate is set to consider deregulation
- Abstracts: What's in a word? Only the future of communications. Split in G.O.P. suggests delay on phone law
- Abstracts: Microsoft is said to irk some big users; browser cited in survey by U.S. witness for suit