AT&T and NCR face major decisions on strategy as holder vote approaches
Article Abstract:
Both AT and T and NCR Corp face important strategic decisions as they prepare for NCR's Mar 28, 1991 shareholders' meeting that could decide the fate of AT and T's $6.12 billion hostile takeover bid. AT and T's $90-per-share bid has been on the table for three months; in that period the Dow Jones Industrial Average has jumped 13 percent, with many high-tech stocks climbing by as much as 40 percent. AT and T must decide whether to increase its bid to an amount closer to NCR's asking price of $125-a-share. NCR has a board of 12 members, four of whom are up for re-election every year. NCR could maintain control of the board for at least a year even if AT and T wins control of all four seats up for election this year. Analysts say that NCR may also expand the number of directors on its board to 20, further diluting AT and T's influence on the board, but a divisive group on the board could still cause problems for NCR.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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NCR and AT&T chairmen hold talks; little progress toward merger is seen
Article Abstract:
NCR Corp's Charles Exley Jr.'s and AT&T's Robert Allen's five hour meeting discussing the attempted takeover by the telecommunications giant revealed little headway towards a settlement, according to analysts. The meeting was held just three days before the special shareholder meeting where AT&T will attempt to oust the current NCR board of directors. AT&T needs 80 percent of the vote to remove the board and replace it with one of its own choosing. Analysts believe Exley spent much of the time praising his company's new computer product line in an attempt to convince AT&T that NCR is worth more than the $100 per share currently being offered.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Comment about this article or add new information about this topic:
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